Kimberly-Clark and Procter & Gamble Under StockCall Microscope: Stocks Offering Good Returns

Tue Feb 5, 2013 7:31am EST

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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.  

    About StockCall.com  

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