Companies have compelling stories that will drive their stocks

Ahead of Jefferies’ 2016 Consumer Conference next week, its consumer sector equity analysts named top picks within the sector.

“Broadly, Dan sees three things that can drive the stock higher from here, namely: sustained improvements in Walmart U.S. comp store sales, a reacceleration in eCommerce growth and an improvement in International operations,” the report said.

Jefferies analyst Kevin Grundy has a buy rating on Procter & Gamble (PG) . Grundy also has a price target of $95 on the stock.

“Kevin expects P&G’s slimmed down portfolio, better focused on geographies and categories where the company can (and should) win, to drive a return to 3.5% organic sales growth by FY18, in-line with the industry but ahead of (consensus) 2.5-3% expectations, and up from 1% average growth during FY15-16e. A positive inflection in organic sales growth and EPS upside (+2% vs. Street in FY17/18) are likely catalysts to restore P&G’s premium multiple,” the report said.

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Procter & Gamble is a holding in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Cramer and Action Alerts Plus Research Director Jack Mohr wrote in a recent weekly roundup:

Shares continued to trade higher this week on little news. We would be buyers under $80, and while we are not in PG for meaningful share appreciation, we consider it a safe income investment (3.3% yield) amid a low-rate environment. We like to view PG as an “equity bond” — a stock that can be viewed akin to a bond due to the stable and predictable nature of its underlying operations. We continue to view PG as a solid long-term investment at a reasonable price and reiterate our $85 price target.