P&G's Strategy Gaining Traction as Sales Rise
Shares are up 8% on the upbeat earnings report, but we still view them as undervalued and think investors should take a closer look.
Erin Lash: The main headline coming out of Proctor and Gamble's first-quarter results was the pronounced uptick in its top-line performance. More specifically, organic sales grew 4% in the quarter and that growth was fairly broad-based with four of the firm's five operating segments posting improvement to the tune of a mid- to high-single-digit clip.
The one laggard remains the firm's baby and family care segment, which slipped about 1%. But we still think that these results indicate that the firm's efforts to rationalize its brand mix and hone its resources on its highest performing categories is beginning to gain traction.
Erin Lash does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.