Procter & Gamble’s stock was down more than 2% after Ulta Beauty’s downbeat comments about the beauty market. Ulta warned of a slowdown in the beauty category due to a mixed economic picture and societal factors. This caused Ulta’s shares to drop over 14% and spread to other companies in the beauty space, including Procter & Gamble. P&G’s Beauty segment is expected to make up a significant portion of its pre-tax income, but sales have been impacted by a temporary boycott in China. Despite this, Procter’s shares surged after earnings, with improving volume trends and profit margins. We believe P&G should not be down this much due to Ulta’s issues and are taking advantage of the weakness to upgrade our rating on the stock.
Jim Cramer’s Charitable Trust is buying 30 shares of Procter & Gamble, increasing its weighting in the stock. This decision follows Ulta’s comments about the beauty market and the resulting negative impact on various beauty companies, including P&G. Despite the softness in the beauty category, Procter’s shares have shown strength after earnings, with improvements in volume trends and profit margins. The Trust is taking advantage of the weakness in P&G’s stock price to upgrade its rating back to 1, buying back half the shares trimmed in February. This decision aligns with Jim Cramer’s buy call on P&G from a recent Morning Meeting.
Estee Lauder is also down on the news about the beauty market, but its situation is different from Procter & Gamble. Estee Lauder is heavily tied to China and Asia Travel Retail, which is undergoing an inventory de-stock. Despite the challenges, the company’s CEO has indicated a potential inflection point in its business, supported by analysts’ views. The Charitable Trust remains mixed on Estee Lauder but hesitant to sell its position in case positive changes occur. As a subscriber to the CNBC Investing Club with Jim Cramer, investors receive trade alerts before Jim executes trades in his charitable trust’s portfolio, with specific waiting periods after issuing trade alerts on CNBC TV.
Investors should be aware that the information provided by the CNBC Investing Club with Jim Cramer is subject to terms and conditions, privacy policy, and a disclaimer. The Club does not create a fiduciary obligation or duty, and no specific outcome or profit is guaranteed. The Trust’s decision to buy shares of Procter & Gamble and its approach to monitoring and executing trades are based on the investment strategy and analysis of Jim Cramer and his team. This includes evaluating market conditions, company performance, and potential opportunities based on their research and expertise.
Overall, the Charitable Trust’s decision to buy shares of Procter & Gamble reflects its confidence in the company’s long-term prospects despite short-term challenges in the beauty market. The Trust is taking advantage of the stock price weakness to increase its position in P&G, leveraging Cramer’s buy call and the opportunity presented by the market reaction to Ulta’s comments. Investors who subscribe to the CNBC Investing Club with Jim Cramer receive trade alerts and insights based on Jim’s analysis and strategy, allowing them to stay informed and potentially benefit from market opportunities. It is important for investors to understand the terms and conditions of the Club and to make informed decisions based on their own financial goals and risk tolerance.
