Why Procter & Gamble Will Move the Dow Tomorrow

Tomorrow morning, the consumer-products giant will announce its latest earnings. Find out what investors expect to see.

Apr 22, 2014 at 4:30PM

The Dow Jones Industrials (DJINDICES:^DJI) posted a solid 65-point rise Tuesday, with investors continuing to send the stock market higher as most companies have outperformed the lowered expectations shareholders had for quarterly earnings results. The Dow's earnings season continues tomorrow as Procter & Gamble (NYSE:PG) weighs in on the consumer-goods front with its quarterly report. What it reports will have implications for its own stock and for the Dow and the broader market, especially in light of what P&G's results will mean for Clorox (NYSE:CLX) and other competitors.

Procter & Gamble will announce its first-quarter results before the market opens Wednesday morning, possibly as early as 7 a.m. EDT based on reporting times in past quarters. Procter & Gamble will then discuss the results during a conference call scheduled to begin at 8:30 a.m. EDT.

Source: P&G.

Investors expect Procter & Gamble to produce modest growth in both earnings and revenue, although they've cut back those expectations over the past several months. With its vast scope as a multinational corporation with truly global reach, Procter & Gamble is vulnerable to economic trends throughout the world, and the company recently reduced its guidance for the quarter based on the Venezuela's currency devaluation. With political risks extant across the globe, risk management is a key element of Procter & Gamble's business success.

Yet Procter & Gamble is also working hard to make the same efficiency gains that other companies have struggled to achieve. The best example came earlier this month, when P&G said it would sell a substantial portion of its pet-food business to Mars for $2.9 billion, allowing the consumer-goods giant to rid itself of a division that has been plagued with recall problems and instead focus on its areas of greatest strength. At the same time, Procter & Gamble is trying to get back to its innovative spirit, looking to introduce new products that will introduce new customers to P&G's line while inviting back those who might have given up on the company.


Source: P&G.

For Dow investors, Procter & Gamble gives an important read on the health of the consumer economy both in the U.S. and around the world. For investors in Clorox and other competitors, P&G's results will offer insight and a useful comparison against which to measure their own success. And for the stock market in general, what pushes P&G's growth is likely to be relevant for companies worldwide that rely on the same economic trends to drive their businesses forward.

6 stock picks poised for incredible growth
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information