We've all heard about equities that are sometimes referred to as Peter Lynch stocks -- companies whose products are consumed by the potential investor herself. Buy a lot of Pantene shampoo? Think of Procter & Gamble
A few of the items from the portfolio of Avon Products
Avon earned $0.62 per share on a diluted basis for the first quarter, compared to $0.42 per diluted share the prior year. That's a 48% EPS increase -- quite lovely. Even lovelier was the double-digit sales growth of 19% to $1.75 billion this quarter.
Chairwoman and CEO Andrea Jung -- who has been listed as one of the most influential female business leaders -- credited the European and Latin American markets as important drivers of the results. She also cited the positive influence of currency exchange. Nevertheless, revenues were genuinely robust of their own accord. Earnings guidance for 2004 given by Jung improved from a previous prediction of $3.18 - $3.20 per share to the possibility that $3.30 might be achieved.
Investors were quite pleased, bidding the stock higher after the report. Can't say I blame them. This is a strong, trusted brand with a unique and famous distribution model -- that of the Avon Lady -- and it is in an industry that is bound to attract a lot of attention by defensive investors for volatile markets that make one reach for the Dramamine. I would have to imagine that going forward, the stock could find a comfortable range to go back and forth in, since it already has displayed such vigorous relative strength. But this could be a stock for long-term players, an add-on-the-dips kind of vehicle.
That's it for me. I hear the doorbell. Might be the Avon Lady, adding more value for the shareholder.
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Fool contributor Steven Mallas owns none of the companies mentioned.