NEW YORK (TheStreet) -- Shares of The Procter & Gamble Co (PG) - Get Report were up 0.86% to $80.92 in afternoon trading Wednesday, ahead of the world's largest consumer-products company's latest quarterly earnings results, due out before the market opens Thursday.
Cramer noted that P&G stock "has come down a great deal and I like the yield."
For the fiscal fourth-quarter, Wall Street is expecting the company to earn 95 cents a share and revenue of $17.98 billion, according to analysts polled by Thomson Reuters.
In the same period of last year, P&G earned 89 cents a share on revenue of $20.16 billion.
Cincinnati, Ohio-based P&G is a consumer packaged goods company with its products sold in more than 180 countries.
The company's customers include mass merchandisers, grocery stores, membership club stores, drug stores, department stores, salons, distributors, e-commerce and stores.
Separately, TheStreet Ratings team rates PROCTER & GAMBLE CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PROCTER & GAMBLE CO (PG) a BUY. 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 expanding profit margins, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for PROCTER & GAMBLE CO is rather high; currently it is at 53.92%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.86% is above that of the industry average.
- After a year of stock price fluctuations, the net result is that PG's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- PROCTER & GAMBLE CO' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, PROCTER & GAMBLE CO's EPS of $3.87 remained unchanged from the prior years' EPS of $3.87. This year, the market expects an improvement in earnings ($3.97 versus $3.87).
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that PG's debt-to-equity ratio is low, the quick ratio, which is currently 0.57, displays a potential problem in covering short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Household Products industry and the overall market on the basis of return on equity, PROCTER & GAMBLE CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: PG Ratings Report