U.S. stocks edge higher; solid earnings season continues
On Monday, DA Davidson provided insights from their recent Best-of-Breed Bison Conference, highlighting the strategies of four companies they cover with a Buy rating, as they navigate the current tariff landscape. Interparfums (NASDAQ: IPAR), known for its fragrances, is considering shifting more production to the United States as a response to tariffs, with 75% of its U.S. sales currently manufactured in Europe. The company intends to take steps to prevent raising its product prices.
Prestige Consumer Healthcare (NYSE: PBH), which produces over-the-counter healthcare products, has disclosed that 15% of its products are made in-house, while a significant majority of the remaining products are sourced within the U.S. The company is anticipating $1 billion in free cash flow, which it plans to use for potential acquisitions, share repurchases, or to increase its balance sheet cash.
Procter & Gamble (NYSE: PG), a multinational consumer goods corporation, was also discussed in the DA Davidson report. Retailer ordering is reportedly lagging behind consumption according to U.S. scanner data and commentary from the CAGNY conference held on February 20th. Though Procter & Gamble’s direct tariff exposure is relatively low, the company acknowledges that it is not entirely shielded from related externalities such as foreign exchange fluctuations, interest rate changes, and a rise in nationalistic sentiments that could lead to boycotts of U.S. products overseas.
Lastly, the firm touched upon WD-40 (NASDAQ: WDFC), which is known for its lubricants and has minimal exposure to tariffs. For detailed financial analysis and Fair Value estimates of all companies mentioned in this article, visit InvestingPro, where you’ll find comprehensive research reports covering over 1,400 US stocks. Despite sourcing some components from China and managing distribution across North America, DA Davidson believes that WD-40’s supply chain initiatives are likely to mitigate some of the tariff-related costs.
All four companies—Interparfums, Prestige Consumer Healthcare, Procter & Gamble, and WD-40—maintain a Buy rating from DA Davidson, indicating the firm’s positive outlook on their stock performance despite the potential challenges posed by global tariffs.
In other recent news, Procter & Gamble (P&G) has introduced its New & Improved Cascade Platinum Plus dishwasher detergent. This new formula aims to address common dishwashing issues like stuck-on food and grease, following a rise in home cooking trends. P&G’s Chief Financial Officer, Andre Schulten, reported a slow start to the current quarter, with additional challenges from tariffs and foreign exchange fluctuations affecting the company’s performance. Despite these hurdles, P&G is maintaining its fiscal year guidance but acknowledges the volatility in the business environment.
BNP Paribas (OTC:BNPQY) analyst Kevin Grundy expressed skepticism about P&G’s fiscal 2025 organic sales guidance, citing short-term market uncertainty in the United States. Grundy’s comments followed a meeting with P&G executives, who noted the heightened volatility and challenges in the US market. While P&G’s business in Europe and Latin America remains strong, the company faces uncertainties in China. Meanwhile, defensive stocks like P&G have seen gains as investors shift away from tech stocks due to concerns over China’s DeepSeek AI technology.
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