Kimberly-Clark and Procter & Gamble Under StockCall Microscope: Stocks Offering Good Returns
LONDON, February 5, 2013 /PRNewswire/ --
Personal products companies have inelastic demand and thus are better equipped to weather the economic storms. However, these companies have their own set of issues. Kimberly-Clark Corp. (NYSE: KMB) is currently looking to correct its previous mistakes as it decides to stop operating in some of the European markets. Instead, it is planning to mobilize its resources towards more profitable markets. Procter & Gamble (NYSE: PG) is reducing its reliance on developed markets and is expanding itself in the emerging economies. StockCall professionals have finished their technical and charting analysis on Kimberly-Clark and Procter & Gamble. The free reports are available now by registering at http://www.stockcall.com/report
Kimberly Clark Pulls Out of European Market
Kimberly-Clark Corporation is on the roll and the stock hits a 52-week high. It recently reported 3 percent increase for its Q4 revenue, while its EPS jumped from $1.28 to $1.37 in the quarter. However, it provided rather bleak outlook for 2013. Due to the company pulling out of European markets, its revenue is likely to tumble down. Unfavorable exchange rate is also expected to take its toll on the top-line of the company. Sign up today for the free research on Kimberly-Clark at http://www.StockCall.com/KMB020513.pdf
Kimberly-Clark took a major strategic decision when it decided to withdraw from European markets. The near-term impact of the move is going to be negative as the company faces lower revenue. However, in the long-run, the move is expected to make sense as the company had failed to make any positive impact in the market, despite its repeated attempts. Under its new plan, the company exits lower margin businesses, especially in Western and Central Europe.
Despite restructuring its business, Kimberly-Clark is expected to grow its revenue at 9 percent per annum and its stock price is likely to show the positive impact. The stock is also attractive for income investors as it offers about 3.31 percent dividend yield.
Procter & Gamble Banks on Emerging Markets
Procter & Gamble Co. started the year with a new joint venture with Teva. The companies collaborated to set up a $90 million production plant in India. The plant is likely to be completed in two years. However, the company is not just expanding but also cutting corners on other fronts. Procter & Gamble spent $918 million in last one year on employee separation package, as a part of its restructuring efforts. The company is looking to complete its restructuring plans ahead of the schedule. It aims to cut about 5,500 jobs in the next three years. Procter & Gamble free technical report is accessible upon sign up at http://www.StockCall.com/PG020513.pdf
Procter & Gamble is looking towards emerging markets to sustain its growth. The company reported healthy numbers for its fiscal quarter of the year. It not only increased its revenue but also improved its margins. Thanks to the positive trend, the company also raised its forecast for the full year. The stock has gained 10 percent on year-to-date basis. Coupled with dividend yield of 2.99 percent, the stock is a good investment. The company also provides value to its investors through buybacks, which are likely to be in the range of $5 billion to $6 billion. The company earlier planned to buyback to the tune of $4 billion to $6 billion.
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