Algorithmic Analysis Suggests Procter & Gamble Is Undervalue
Source: P&G
Summary
Procter & Gamble, a blue chip with a long history of growth and dividend payments, is worth considering as a long-term investment vehicle for investors.
Recent changes to P&G’s strategy, including increased expansion to foreign markets and an emphasis on cost-cutting and innovation, has the potential to spark significant increases in its long-term share value.
P&G has reported a 5% growth in foreign markets in its last quarter, and is gearing up to cut $10 billion in inefficiencies by 2016.
I Know First’s self-learning algorithm has a strong bullish signal for P&G shares in both the short and long terms.
Most consumers and investors are familiar with Procter & Gamble (PG), a corporate giant specializing in beauty, health and family care products that services millions of consumers in over 180 countries and territories. A corporation with a long history of market success, Procter & Gamble accounts for more than fifty percent of the laundry product market and approximately twenty percent of the male shaving market. Despite its rock-solid dividend payments and balance sheet, most investors are reluctant to go for P&G due to its reputation as a blue chip that may be experiencing difficulties holding onto its share of the domestic market. That strategy, however, doesn't account for P&G's rapid expansion into foreign markets like China, India and Brazil, as well as its push to optimize efficiency and cut costs within the firm by focusing on its core markets. Combined with Procter and Gamble's constant emphasis on innovation, this makes for some very optimistic prospects for the P&G stock. The I Know First self-learning algorithm has a strong bullish signal both in the short-term and within a year, as P&G's innovation and cost-cutting strategies develop further.
Business Projections
P&G is one of the most accomplished and credible veterans of the international stock market, paying steady dividends to its shareholders for 124 years and maintaining a steady cash flow and PE ratio. Further, its stock has been consistently going up in the past five years, mainly due to its expansion into the international markets and its ruthless swallowing of smaller competitors. The current yield of dividends and earnings per share, however, has surpassed even the rock-solid five year average, marking a good time for investors to get in before the other changes P&G is planning to make.
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