The Alpha Algorithm Targets Yet Another Big Blue Chip

2016 is the year of the blue-chip stock among top Alpha Algorithm holdings.

This week’s recommendation, The Procter & Gamble Company (PG), is one of the longest-established names in American business, and it is likely that you use its products every single day.

Founded in 1837, back when Andrew Jackson handed Martin Van Buren the presidency, Cincinnati, Ohio-based The Procter & Gamble Company (PG) provides branded consumer packaged goods to people in North America, Europe, the Asia-Pacific, India, the Middle East, Africa and Latin America. Its products include Head & Shoulders, Old Spice, Braun, Fusion, Gillette, Crest, Vicks, Metamucil, Pepto-Bismol, Tide, Pampers and Charmin, among many others.

Proctor & Gamble Company vs. the S&P 500 YTD

Eight Top Investment Strategies Betting on Procter & Gamble Company (PG)

1. Share Buybacks

The company’s outstanding shares have been reduced by at least 5% in the previous year through share repurchases.

2. Fundamental Strength

It is a top U.S. stock based on fundamentals measured by book value, cash flow, sales and dividends.

3. Dividend Aristocrat

The stock has increased dividends for at least 25 consecutive years.

4. Dividend Dog

It is one of the five highest-yielding stocks among each of the 10 sectors tracked in the S&P 500.

5. Goldman Sachs’ Active Beta

The stock is selected according to four factors — value, quality, momentum and low volatility. These, in turn, are based on criteria including book value, sales and cash flow scaled by share price, profit/assets or return on equity (ROE), risk-adjusted returns and daily standard deviation of returns.

6. Value Tilt

Selected using a multi-factor modeling approach, this is a value stock designed to enhance portfolio risk/return characteristics.

7. Capital Strength

The stock is part of a strategy that seeks to outperform the market by selecting companies based on the strength of their balance sheets, long-term debt ratios and return on assets (ROA).

8. Low Interest Rate Sensitivity

The stock is a large-cap U.S. stock selected for its low volatility and positive price performance in a rising-interest-rate environment.

Recommendation

Buy The Proctor & Gamble Company (PG) at market today and place your stop at $81.00. With the recent volatility in the stock, I am holding off on an option recommendation for now.

Portfolio Update

You were stopped out of Edwards Lifesciences Corp.(EW) at a loss when the stock opened at $99.40 after the company missed revenues.

Finally, set your stop for last week’s recommendation, Activision Blizzard, Inc. (ATVI), at $39.00.

Sincerely,

Nicholas A. Vardy