Church and Dwight were unjustly collapsed this year, according to Wells Fargo, and this may have created an opportunity for investors. Analyst Chris Carey has improved the stock of consumer goods to overweight by the same weight, saying it appears to be a good entry point for a traditionally protected stockpile. “Stocks are high, the prospects for a recession (or at least a gradual slowdown) seem increasingly basic, which means that the protective qualities of the CHD shine even brighter,” Kerry wrote. During this recent market downturn, Church and Dwight failed to fulfill their protective role for portfolios, but that could give shares a further boost, according to Wells Fargo. “CHD has fallen 20% since the beginning of the year, twice the performance of Staples and trading at historical discounts to competitors, making this fundamental misunderstanding in stocks a potentially attractive opportunity,” Kerry said. Part of this misunderstanding, according to Kerry, is that investors are too negative about Church’s and Dwight’s laundry business, which can recover faster than expected. Wells Fargo also said the company’s exposure to rising fuel prices was “manageable”. The investment firm maintained its $ 95 share price for Church & Dwight, up more than 15 percent when the stock closed on Friday. – Michael Bloom of CNBC contributed to this report.
Wells Fargo upgrades Church and Dwight, says stockpile stock is up
