We recently compiled a list of the 14 Best FMCG Stocks To Buy Now. In this article, we’ll explore how The Procter & Gamble Company (NYSE:PG) compares to other top FMCG stocks.
Modern pantries are filled with toilet paper, soap, toothpaste, beverages and food these are essentials even during inflation as consumers prioritize them. They may buy in bulk or at big-box stores to save money; however, prices continue rising for these goods.
Also known as consumer packaged goods (CPG) or fast-moving consumer goods (FMCG), such products are inexpensive and have a high rate of sale. They’re called “fast-moving” because they fly off shelves due to their frequent usage. Bonds and cash are usually used by investors for risk management purposes but FMCG stocks offer a defensive option which provides both growth and income; they might not have spectacular growth numbers but typically fall less during recessions. Some sectors like food, tobacco and alcohol might even see increased demand during tough economic times. Social activity shopping is driving the global FMCG sector’s steady growth through experiential retailing where people shop together; thus it is anticipated that the worldwide FMCG market will hit $18,939.4 billion by 2031 with CAGR of 5.1% from 2022-2031 according to a report.
Shift in M&A Activity
Consumer goods transactions dipped last year before seeing an altered landscape for M&A activity this year as companies switched to more deals at lower values per deal. Food constituted approximately 40% of deal volume while beverages along with durables made up around 30%. In terms of deal value personal care led with 38%, driven mainly by large spin-offs involving pharmaceutical companies’ consumer businesses such as Johnson & Johnsons’ $42bn spin-off of Kenvue.
Late May saw major retailers reporting Q1 2024 earnings which offered insight into US consumer sentiment; consumer spending accounts for roughly 70% of the American economy. Walmart CFO John Rainey said:
“Many consumer pocketbooks are still stretched, and we see the effect of that in our business mix as they’re spending more of their paychecks on non-discretionary categories and less on general merchandise.”
This signals that people are buying essential groceries ahead of televisions or other discretionary items – implying steady overall consumer spending but those with lower disposable income may be facing some challenges and looking for value as inflation takes hold across markets worldwide making FCMG stocks more resilient
Our method is a deep dive into NYSE and NASDAQ listed FMCG stocks; a selection of 14 top FMCGs to buy now based on hedge funds have been curated. The top stock picks of the best hedge funds can be imitated to outperform the market according to our research. Our quarterly newsletter strategy picks 14 small-cap and large-cap stocks each quarter which have returned 275% since May 2014 above its benchmark by 150 percentage points.
Ranking second on our list is The Procter & Gamble Company (NYSE:PG). P&G is an Ohio-based global consumer packaged goods giant founded back in 1837 with headquarters located at Cincinnati. This April saw them release fiscal Q3 results showing adjusted EPS figures coming in at $1.52 which was higher than estimates made; meanwhile revenues climbed by just over half a percent year-on-year to reach twenty point two billion dollars
On April 28th, Argus increased its price target for P&G from $180 to $185 and kept its Buy rating. The company’s long-term growth potential is driven by product innovation, productivity improvement and better advertising strategy, the firm said. In addition to that, Dawn Powerwash and other inventions have helped P&G gain more market share so as to mitigate inflationary pressures.
As per Insider Monkey’s database, Ken Fisher (founder of Fisher Asset Management) has the biggest position in P&G with a value of $2.7 billion. 69 hedge funds reported owning stakes in this firm at the end of March quarter.
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