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 – 8.38 B;
Average volume – 10.17 М;
P/E - 27.34;
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;
  • According to the latest report on the third quarter of the fiscal year 2016, the company's revenue amounted to 15.76 billion USD against a market expectation of 15.73 billion USD. PG announced a net profit of $0.86 per share, which is better than a forecast value of $0.81 per share;
  • The company's work efficiency is confirmed by high operating and net profit margins (17.72% and 12.93%, respectively) as compared to competitors' respective results (13.73% and 10.53%);
  • Another driver pointing at an eventual increase in the company's cost is P/E Ratio. PG's P/E Ratio (27.34) is lower than the average P/E in the industry (61.69) and in the sector (44.46), which may suggest a further growth of the company's quotes;
  • PG would be appropriate for realization of long-term investment strategies. The company regularly pays out dividends to its shareholders. The company's dividend profitability (3.27%) is much higher than competitors' (1.38%);
  • Investment companies and banks (UBS, Sterne Agee CRT, and Stifel) project an increase in the company's quotes of up to 85 USD per share.

Summary:

  • The company's recent report proves that the company's management has been working efficiently. PG's results are better than expected.
  • The analysis of multipliers indicates the probability of the company's capitalization growth.
  • Large investment funds forecast a positive trend for the company's shares.
  • Thus, we expect that the company's quotes will be rising in the nearest future.

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

Key levels:
Support levels: 81.00 USD, 80.25USD, 79.40 USD
Resistance levels: 81.75USD, 82.80USD, 83.55 USD

Medium-term trading, H1
The issuer is currently trading between the support and resistance levels of 81.00/81.75USD. Once a resistance level of 81.75 USD is broken and tested and relevant confirming signals appear (PriceAction 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 82.70USD, 83.50 USD and 85.00 USD, with Trailing Stop applied.

Medium-term trading, H1
Medium-term trading, H1

Short-term trading, М15
The issuer is currently trading between the local support and resistance levels of 81.15/81.75USD. 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.

Short-term trading, М15
Short-term trading, М15




The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.



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