PROCTER & GAMBLE CO. (New York symbol PG; www.pg.com) is one of the world’s largest makers of household and personal-care products. Its top brands include Tide detergent, Crest toothpaste, Head & Shoulders shampoo and Pampers diapers.

The company faces rising competition from generic brands. Last year, it responded with a major restructuring plan, which mainly involves cutting 5% of its workforce and closing plants.

The company expects severance and other costs to total $3.5 billion over the next five years. However, these moves should cut its costs by $10 billion over the same period.

In its fiscal 2013 second quarter, which ended December 31, 2012, Procter’s earnings jumped 140.0%, to $4.1 billion, or $1.39 a share. A year earlier, it earned $1.7 billion, or $0.56 a share. If you disregard restructuring costs and other one-time items, earnings per share rose 11.9%, to $1.22 from $1.09.

“What works in Canada is working in the U.S.” That’s what Mr. Peter Brimelow of Dow Jones MarketWatch recently wrote about Wall Street Stock Forecaster, one of a group of “remarkable Canadian newsletters” that have “assembled a long and very strong record.” The record, as compiled by the authoritative Hulbert Financial Digest, shows that the compound annual return of Wall Street Stock Forecaster has beaten the Wilshire 5000 Total Market Index by almost 30% over the past decade.

You are not getting the full potential out of your investments if you do not include a selection of the best U.S. stocks in your portfolio. And the results show that Wall Street Stock Forecaster uncovers the American stocks with the greatest growth potential. As a new investor, you can save $50.00 on one full year (12 issues), PLUS you will start profiting from our weekly hotline updates and recommendations immediately. Click here to get started right away.

Stock advice: Overseas markets now account for two-thirds of sales

The savings are also letting Procter cut its prices to compete with generic brands. But even with the lower prices, Procter’s sales rose 2.0% in the quarter, to $22.2 billion from $21.7 billion. Overseas markets supply two-thirds of Procter’s sales, and the high U.S. dollar hurts their contribution. Without the negative impact of exchange rates, sales rose 3.0%.

Procter’s balance sheet remains sound. Its long-term debt of $23.6 billion is a low 11% of its market cap. It also holds cash of $6.6 billion, or $2.43 a share.

The stock is up 19% in the past year and now trades at 19.3 times the $3.99 a share that the company will probably earn in fiscal 2013. The $2.25-a-share dividend yields 2.9%.

In the latest edition of Wall Street Stock Forecaster, we look at whether Procter’s well-known brands can continue to improve their profitability against the stiff competition from generics. We also look at whether Procter is likely to raise its dividend and whether the share price can keep rising. We conclude with our clear buy-hold-sell advice on the stock.

(Note: If you are a current subscriber to Wall Street Stock Forecaster, please click here to view Pat’s recommendation. Be sure to log in first.)

COMMENTS PLEASE—Share your investment experience and opinions with fellow TSINetwork.ca members

When a well-established company announces a restructuring that usually involves cutting workforce and closing plants, do you take a negative view or a wait-and-see attitude? What would make the difference between your holding or selling the stock in a situation like that? Let us know what you think.