Procter & Gamble (PG-N)

Is enjoying the rotation out of semis/tech stocks today, up 3.38%. It's been undervalued lately. Has more room to run; he expects the rotation to continue beyond today.

It reports Wednesday. He fears they might struggle with the strong USD in China

A dividend play for 2025 at 2.38%. Not sexy, but consistently generates earnings, free cash flow, and each year grows its dividend. Offers growth wealth generation over time.

Trades at 24x forward PE at only 1% organic growth. She's surprised they raised prices again, though they have pricing power, but at some point it will hurt volumes.

Eventually as they keep raising prices (since Covid), volumes will do gown. He wrote a $175 call against this, expiring in 7 days.

They beat on the topline, but missed the bottom, because China was -15%, though it was expected. Organic sales were fine and reiterated guidance. Trades at a too-pricey 24x forward. He doesn't like staples, but continues to like this.

They report Friday. Last quarter, their China numbers were terrible and he doubts they can turn it around so quickly. He sold it this week.

Very stable, reliable earnings. Decent, but not fantastic, growth. About 7% earnings growth forecast for next little while, but you're paying 23-24x PE. 

OK if you think a recession is around the corner. He doesn't, so he'd favour COST and WMT for continued mid-cycle economic growth. 

Trades at 25x PE and still likes it. Pays a 2.5% dividend. Maybe 3% growth. Good overall.

It yields 2.5% and shares are up 15% in the last 6 months. Don't chase this, but he likes it.

He saw in their report huge sales past quarter, exploding gross margins while their costs have slid. But shares fell in today's opening. Stupid.

Wait till they report earnings next week. He expects sell-off the week after. Buy then.

Pays a 2.34% dividend yield. Shares are up 12% in 12 months, but lags the S&P since March 2020. Staples don't do well outside a recession. The stock has done merely okay.

They report Tuesday. He doesn't see a blowout, because the US dollar has gotten strong and that dollar strongly determines PGH's profits, given their overseas business. If shares get hammered, buy. This is a dividend aristocrat.

His theme for today is that he's really not that hot on the consumer. Of the whole economy, the consumer sector is the most exposed. Though a great company with a lot of good products, branded products tend to suffer when consumers are stretched. Growing about 3-5% revenue, 7-9% on earnings, trading at 23x. Pass. Better opportunities elsewhere.