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 - 27.11;
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;
  • On 26 April the company issued report for the Q3 of the fiscal year 2016, which showed that company’s revenue fell by 7% to 15.76 billion USD. In the reporting period net profit net profit of & Gamble Company fell by 3% to 0.86 USD per share. The results were lower than expected in the market, as the forecast of the revenue was 15.73 billion USD and EPS (earnings per share) was 0.81 USD;
  • At the press-conference company’s executives said that financial performance was better than expected by the market due to strict stringent program of cost-cutting and increase in price of goods. In the reporting period the price of the sold goods has increased by 1%. Costs of sales have reduced by 11.5% up to 8.45 billion USD. Administrative expenses fell by 14% to 4.6 billion USD;
  • The company issued revised forecast for the fiscal year 2016. It is expected that annual revenue will drop by 3-6% against the previous forecast of 3-8% due to pressure from the strong USD. However, PG expects that the development of such brands as Pampers, Tide and Gillette will improve company’s financial results in future;
  • The company has the best rates of profitability and investments among the closest competitors in the industry. A return on investments is 8.93%. A return on equity is 13.84%. Average indicators in industry are 7.38% and 13.55% respectively.

Summary:

  • Despite the reduction of revenue and net profit company’s results were better than expected by the market.
  • The company has strong growth potential. The development of the popular and rapidly growing brands, such as Pampers, Tide and Gillette will contribute to improvement of the company’s financial performance. 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: 80.70 USD and 80.00 USD.
Resistance levels: 82.10 USD and 83.55 USD

Medium-term trading, Н1
Currently, the issuer has broken out and consolidated above the local resistance level of 80.70 USD. If the price maintains the mirrored support level of 80.70 USD 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 82.00 USD, 83.50 USD and 85.00 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 79.95 - 81.30 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




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