2016-08-04 16:24:37

The Procter & Gamble Company, #PG [NYSE]
Consumer goods, Hygiene products, USA

Financial performance of the company:

Index – DJIA, S&P 500;
Beta – 0.47;
Capitalization – 222.13 В;
Return on asset – 6.30%;
Income - 8.43 B;
Average volume – 10.17 М;
P/E - 27.34;
ATR – 1.40.

Analytical review:

  • The company ranks the second on capitalization in the sector of “Consumer goods” among the issuers traded in the American stock market;
  • Over the past three months company’s stocks have grown by 6% due to positive dynamics of the US stock market and favourable financial performance of the company. It is expected that the rise in stocks will continue;
  • This week, company’s report for Q4 of the fiscal year 2016 was released, which showed that company’s revenue amounted to 16.10 billion USD against the forecast of 15.84 billion USD. Net profit of the company was $0.79 0.86 per share against the forecast of $0.74 per share;
  • At the press-conference management of the company stated that revenue exceeded market expectations due to high demand for hygiene products, goods for kids and household chemicals;
  • The company announced forecast of the fiscal year 2017, according to which revenue and net profit are expected to rise by 2% and 4%-6% respectively;  
  • Large investment companies and banks (Stifel, Jefferies, UBS) predict the rise in company’s shares up to 92-95 USD per share.

Summary:

  • Company’s last report showed that its management is on the right track. The company has strong growth potential. Company’s results exceeded market expectations. Large investors believe that company’s stock will go up;
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Procter & Gamble Company

Key levels:
Support levels: 85.50 USD and 84.45 USD.
Resistance level: 87.00 USD.

Medium-term trading, Н1
Currently, the issuer is traded at the support level of 85.50 USD. If the price maintains this level and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 87.00 USD, 88.50 USD and 91.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1


Short term trading, М15
Currently, the issuer is traded between the local support and resistance levels of 85.65/86.05 USD. It is recommended to enter the market after breaking out and testing of these levels. Positions can be opened at the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short term trading, М15
Short term trading, М15