2016-08-30 14:01:02

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

Financial performance:

Index –DJIA, S&P 500; Beta – 0.47;
Capitalization - 222.13 В Assets profitability - 6.30%;
Revenue - 8.43 B; Average volume – 10.17 М;
P/E - 25.11; ATR – 1.40.

Analytical review:

  • The Company has the 2nd biggest capitalization in the consumer goods sector among the issuers listed on the US stock market.
  • The Company's stock has been trading upwards for the past 6 months. The issuer edged up more than 10.5% over this period. PG retained a mirror support level at 87.40 USD last week. The company's quotes are expected to rise further.
  • In early August PG published an upbeat corporate report on the 4th quarter of the fiscal year 2016, exceeding market expectations. The Company announced revenue of 16.10 billion USD. PG's net profit amounted to $0.79 per share. Analysts expected the numbers to reach 15.85 billion USD and $0.74 per share, respectively.
  • Financial multipliers indicate that the company's shares may grow. PG's P/E Ratio (25.11) is much lower than an average value in the industry (66.46) and in the sector (44.85). Marginality factors exceed the average value in this sector.
  • Technical analysis suggests that the issuer's ascending trend may continue. A classical pattern of the Price Action method - Outside Bar - has formed on the H1 chart. The MACD histogram is in the positive zone and its volumes continue to grow.

Summary:

  • The latest report has consolidated investors' confidence in the company. The company's revenue and net profit exceeded analysts' expectations. Financial multipliers and technical analysis suggest that the issuer's ascending trend may continue.
  • Thus, we expect that PG's quotes will be rising in the nearest future.

Trading tips for the The Procter & Gamble Company's CFDs

Key levels:

Support levels: 87.40 USD, 86.45 USD
Resistance levels: 88.45 USD

Medium-term trading, H1

The issuer is currently trading near a resistance level of 88.45 USD. Once this level is broken and tested and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 90.00 USD, 91.50 USD and 93.00 USD, with Trailing Stop applied.

Analytical review of the The Procter & Gamble Company's shares for 30.08.2016

Short-term trading, M15

The issuer is currently trading between the local support and resistance levels of 87.65/88.35 USD. We advise you to search for market entry points once these levels are broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

Analytical review of the The Procter & Gamble Company's shares for 30.08.2016