Proctor & Gamble (PG) Stock Closes Higher After Announcing Tide Pod Subscription Service

Proctor & Gamble (PG) stock closed up on Tuesday after announcing the new Tide Wash Club, a Tide pod subscription service modeled after the success of the Dollar Shave Club.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Proctor & Gamble (PG) - Get Report closed up 0.30% to $86.17 on Tuesday, as the company announced a new online subscription service for Tide Pods, reports the Wall Street Journal. 

The Cincinnati, OH-based consumer goods company has typically relied on established stores like Walmart (WMT) and Amazon.com (AMZN) to sell its products. But now P&G will sell its Tide pods directly to customers through the Tide Wash Club, an online subscription service that offers free shipping at regular intervals. 

The company is modeling the service after the Dollar Shave Club, which chipped away at P&G's portion of the razor and blade market, which fell to 59% last year from 71% in 2010, according to the Journal. Company executives were surprised at the shaving club's success and decided to focus more on how consumers buy P&G products such as shampoo, razors, and diapers.

The company now has its own Gillette Shave Club. 

Additionally, P&G is offering in Chicago Tide Spin, a service that lets customers order their laundry to be picked up and delivered from Tide-branded couriers through a mobile app, the Journal said. 

The two initiatives are part of the company's plan to attract younger customers that aren't as prone to brand loyalty as other generations. P&G's annual sales growth hit a four-year low of $70.7 billion in 2015.

The Tide Wash Club costs $15.99 or $20.99, depending on the package size. 

(Proctor & Gamble is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate PROCTER & GAMBLE CO as a Buy with a ratings score of B. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

You can view the full analysis from the report here: PG

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