Group 1 - The Macquarie Core Equity Fund's Institutional Class achieved a return of 11.94% in Q2 2025, outperforming the S&P 500 Index, which rose by 10.94% [1] - The strong performance of the equity market was attributed to reduced concerns over potential tariffs from the Trump administration, which paused tariff implementation [1] - Sector selection contributed to 80% of the fund's relative performance, while individual security selection accounted for the remaining 20% [1] Group 2 - The Procter & Gamble Company (NYSE:PG) experienced a one-month return of -0.85% and a 52-week decline of 9.70%, with a market capitalization of $368.205 billion as of September 18, 2025 [2] - The Macquarie Core Equity Fund sold its holdings in The Procter & Gamble Company at reasonable gains, citing forecasts of slowing organic sales growth due to strong pricing gains and slowing employment and wage growth [3] - The Procter & Gamble Company was held by 88 hedge fund portfolios at the end of Q2 2025, consistent with the previous quarter, but the fund believes certain AI stocks present greater upside potential [3]

Core Insights - Newell Brands Inc. (NWL) has shown significant progress in margin recovery despite pressure on top-line sales, with normalized gross margin increasing by 80 basis points year over year to 35.6% and normalized operating margin expanding by 10 basis points to 10.7% in Q2 2025 [1][8] - The company has committed to doubling its evergreen margin-expansion target, now aiming for a 110-basis-point operating margin gain in 2025 compared to 2024 [1] Cost-Saving Strategy - Newell has invested nearly $2 billion in its North American production system since 2017, enhancing automation and creating tariff-advantaged manufacturing capacity [2] - The company expects to fully offset $155 million of gross tariff costs in 2025 through supply chain leverage, tariff-related price adjustments, and ongoing productivity programs [2] - Management is targeting a reduction in overhead as a percentage of sales starting in Q3, following years of reinvestment in brand management and consumer insights [2] Future Projections - Newell projects normalized operating margins of 9% to 9.5% for the full year 2025, with normalized EPS guidance of 66-70 cents [3] - The company anticipates sequential top-line improvement in the second half of the year, supported by distribution gains and innovation launches [3] - Long-term goals include achieving a gross margin range of 37-38% and sustainably expanding operating margins through innovation and automation [3] Stock Performance - Newell's shares have gained 11.8% over the past three months, outperforming both the industry and the broader Consumer Staples sector, which declined by 4.6% and 4.2%, respectively [4] - The stock currently trades at a forward 12-month P/E ratio of 8.87X, significantly lower than the industry average of 19.80X and the sector average of 16.85X, indicating a modest discount relative to peers [9]

Core Insights - The article compares Procter & Gamble (PG) and Colgate-Palmolive (CL), highlighting their market positions, financial performance, and strategic priorities within the consumer-packaged goods (CPG) industry [1][2]. Procter & Gamble (PG) - PG operates in over 180 countries with a market capitalization close to $400 billion, offering a diverse product lineup including Tide, Pampers, Gillette, and Olay, which provides a competitive advantage [3]. - In Q3 fiscal 2025, PG reported earnings per share (EPS) of $1.54, meeting analyst expectations, while maintaining or growing market share in seven of its ten core categories [4]. - The company focuses on premiumization and innovation, launching high-performance products and investing in advertising rather than discount promotions, which supports long-term brand strength [5]. - PG anticipates approximately $200 million in after-tax headwinds from commodity costs and foreign exchange in fiscal 2025, alongside projected tariff-related costs of $1-$1.5 billion annually [6]. - The company plans to return $16-17 billion to shareholders through dividends and buybacks, demonstrating a commitment to long-term value creation [7]. Colgate-Palmolive (CL) - CL is a leader in oral care with a 41% share of the global toothpaste market and a 32% share in manual toothbrushes, while also expanding into pet nutrition and skincare [9][10]. - In Q1 2025, CL reported sales exceeding $4.91 billion, beating estimates despite a 3% year-over-year decline, with an EPS of 91 cents also surpassing expectations [11]. - The company expects $200 million in incremental tariff impacts in 2025 but is mitigating these through supply-chain flexibility and productivity gains, having invested $2 billion in U.S. supply-chain upgrades over the past five years [12]. - CL maintains a focus on advertising ROI and AI-driven analytics to optimize spending while continuing to innovate and premiumize its offerings [13]. - The company is positioned to deliver sustainable shareholder value through its strong balance sheet and disciplined execution, despite short-term pressures [14][26]. Financial Estimates - For fiscal 2025, PG's sales and EPS are expected to grow by 0.4% and 3%, respectively, with EPS estimates down by 1.2% in the past week [15]. - CL's sales and EPS estimates suggest year-over-year growth of 0.6% and 1.4%, with EPS estimates down by 0.5% recently [18]. - Both companies have experienced downward estimate revisions, but CL's revisions are less severe compared to PG [20]. Price Performance & Valuation - Year-to-date, PG shares have declined by 3.1%, while CL stock has gained 1.4% [21]. - PG is trading at a forward P/E multiple of 23.06X, below its five-year median of 23.65X, indicating a potentially undervalued position [23]. - CL's forward P/E multiple is at 24.47X, above its five-year median of 24.1X, reflecting its solid fundamentals and growth strategy [24]. Conclusion - PG's extensive global presence and diversified brand portfolio provide a foundation for long-term revenue stability, though it faces geopolitical and market-specific challenges [25]. - CL's strong brand equity and adaptability position it as an attractive investment option, particularly with lower tariff risks and solid fundamentals [27].