Stocks slipped last week, dragging the major stock market indices into negative territory. The Dow declined approximately 300 points, giving up earlier gains on investor concerns over rising inflation and looming interest rate hikes.
Furthermore, many big technology stocks lost steam toward the end of the week. Ryan Detrick of LPL Financial said, "Investors need to be aware that 2022 probably will be a much rougher ride."
Amid this environment, the prices of Dow Jones stocks. The Procter & Gamble Company (PG) and Chevron Corporation (CVX) soared skyward owing to their strong fundamentals and solid growth prospects. So, we think these stocks could be great picks now.
The Procter & Gamble Company (PG)
PG is a consumer-packaged goods company that serves North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. The Cincinnati, Ohio-based company provides Beauty, Grooming, Health Care, Fabric & Home Care, Feminine & Family Care products. It offers its products under Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, and various other brands.
This month, Dawn, one of PG's brands, introduced Dawn EZ-Squeeze, dishwasher detergent in an innovative container. The company believes that the product should boost sales by providing its users with an innovative way to wash dishes.
PG's net sales increased 6.1% year-over-year to $20.95 billion in its fiscal second quarter, ended Dec. 31, 2021. The company's gross profit came in at $10.29 billion. Its operating income amounted to $5.17 billion. And its net earnings came in at $4.24 billion.
Analysts expect PG's revenue for its fiscal 2022 to be $79.52 billion, representing4.5% growth year-over-year. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. PG's EPS is estimated to grow 4.4% in fiscal 2021 and 7.4% in fiscal 2022. The stock has gained 24.1% over the past year and 2.74% over the past week.
PG's strong fundamentals are reflected in its POWR Ratings. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
PG has a B grade for Stability and Quality. We have also graded PG for Momentum, Value, Sentiment, and Growth. Click here to access all of PG's ratings. PG is ranked #20 of 67 stocks in the Consumer - Goods industry.
Chevron Corporation (CVX)
CVX in San Ramon, Calif., is an energy company that operates in Upstream and Downstream segments. The company has integrated energy, chemicals, and petroleum operations worldwide. CVX has also been involved in cash management and debt financing activities, insurance operations, real estate activities, and technology businesses.
Last month, Pavilion Energy Trading & Supply Pte. Ltd., QatarEnergy, and CVX jointly published a quantification and reporting methodology to produce a statement of greenhouse gas emissions (SGE) for delivered LNG cargoes. The companies believe that their methodology should enhance transparency, improve accuracy, and build stakeholder confidence in data reliability to help advance net zero goals.
During the third quarter, ended Sept. 30, 2021, CVX's total revenues increased 82.9% year-over-year to $44.71 billion. The company's net income came in at $6.12 billion, versus a $209 million net loss in the prior-year quarter. Also, its EPS amounted to $3.19, compared to a $0.12 loss per share in the year-ago quarter.
CVX's revenue is estimated to increase 9.4% year-over-year to $173.57 billion in its fiscal year 2022. Also, its EPS is expected to increase 17.2% in fiscal 2022. CVX has gained 38.7% in price over the past year, 0.09% over the past week.
CVX's POWR Ratings reflect this promising outlook. The stock has an A grade for Growth and Momentum.
In addition to the POWR Rating grades I've just highlighted, one can see CVX's ratings for Value, Stability, Quality, and Sentiment here. The stock is ranked #21 of 77 stocks in the B-rated Energy – Oil & Gas industry.
PG shares were trading at $158.63 per share on Tuesday afternoon, down $2.67 (-1.66%). Year-to-date, PG has declined -2.50%, versus a -9.49% rise in the benchmark S&P 500 index during the same period.
About the Author: Priyanka Mandal
Priyanka is a passionate investment analyst and financial journalist. After earning a master's degree in economics, her interest in financial markets motivated her to begin her career in investment research.
2 Dow Jones Stocks That Rallied Last Week as the Market Tanked StockNews.com
