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;
  • According to the company’s last report for Q3 of the fiscal year 2016, company’s revenue amounted to 15.76 billion USD against the forecast of 15.73 billion USD. PG announced that net profit of the company in Q3 was $0.86 per share against the forecast of $0.81per share;
  • Last month company’s dynamics is positive. The price of company’s stocks has increased by over 3.5%. PG in incorporated into the indices DJIA and S&P 500. The rise in the American stock market also has a positive effect on the rise in company’s stocks. Over a month, ETF of the index S&P 500 (#SPY) has grown by 2.32%;
  • At the beginning of June the company announced the launch of repurchase program to buy 14.5 million shares in the near future. This program will increase demand for the company’s stocks and demonstrate optimism of the management about future development;
  • Another driver, which shows further rise in the price of the company, is P/E Ratio. Company’s P/E Ratio is (27.34), which is below average P/E in the industry (61.69) and in the sector (44.46);
  • Large investment companies and banks (UBS, Sterne Agee CRT, Jefferies) predict the rise in company’s shares up to 95 USD per share.

Summary:

  • Company’s last report showed that its management is in the right track. The company has strong growth potential. PG has 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 Procter & Gamble Company

Key levels:
Support levels: 82.10 USD and 79.40 USD.
Resistance level: 83.55 USD

Long-term trading, D1
Currently, the issuer is traded at the resistance level of 83.55 USD. After breaking out and testing of this level 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 85.0 USD, 87.00 USD and 89.00 USD with the use of trailing stop.

Long-term trading, D1
Long-term trading, D1

Short term trading, М15
Currently, the issuer is traded between the local support and resistance levels of 83.35 - 83.75 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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