Procter & Gamble Trading forecasts and signals

About the companyThe Procter & Gamble Company is an American multinational company, one of the leaders of the global consumer goods market. The company's shares are taken into account when calculating the Dow Jones Industrial Average. The company ranks 34th in the Fortune 500 list. P&G is the world's largest advertiser, the company's advertising costs exceed $8 billion. The company's headquarters are located in Cincinnati (Ohio). The geographical distribution of revenue is as follows: America (49.6%), Asia (26.4%), Europe (18.5%), Africa and the Middle East (5.5%).Investment attractiveness factors1. P&G's net income in the 3rd quarter of the fiscal year was $3.36 billion, or $1.33 per share, compared with $3.27 billion, or $1.26 per share, a year earlier. Excluding one-time items, the company earned $1.33 per share, exceeding the earnings expected by analysts of $1.28 per share. Net sales rose 7% to $19.38 billion, beating expectations of $18.73 billion. The company's organic revenue grew by 10% in the quarter, although the volume, cleared of the impact of currency and price changes, increased by only 3%. Thus, in Q3 7% of organic revenue was achieved due to price growth and positive currency revaluation compared to 6% in Q2.2. P&G's ability to continually raise the bar of its products allows it to provide faster growth and higher profits than its competitors. Although margins shrank this quarter due to inflation, that drop was less than Kimberly Clark's. Average prices have also risen, partly due to consumers switching to popular premium offerings across the portfolio. The company strives to compete only in the most attractive niches that can increase profitability by improving products.3. P&G sees several serious risks in the future that could make fiscal year 2023 as difficult as 2022 was in many ways. The main problems will be the increased costs of raw materials and transportation, as well as the slowdown in GDP growth in some regions of presence. However, the company is still confident that it will be able to increase sales by 2-4% this year after last year's growth of 7%. Kimberly Clark, for example, recently predicted that sales of organic products will remain unchanged in 2022. Executives see a sustained post-pandemic upswing in several key categories, such as health and hygiene, and home maintenance, which should help P&G outgrow the industry even after the COVID-19 threat ends. Investors' returns will be further increased by increasing dividends and share repurchase costs, which together should amount to about $8.5 billion in the 2022 fiscal year.ConclusionThe Procter & Gamble Company, despite certain difficulties associated with inflationary pressure, has good prospects for growth. The company has higher profitability than its competitors, largely due to the fact that it regularly invests in the quality of its products and tries to enter only those segments that allow it to compete by improving products and increasing margins. Earlier, P&G reported that it incurred an additional $160 million in expenses due to the increase in the cost of raw materials and transportation. However, we believe that the company has already begun to include additional costs in the cost of its products, as it has already announced, and they will be less reflected in margins.The target price for the company is $176, the recommendation is ...

The US stock market retains a corrective mood, the drivers of which are the lockdown in China, the revision of US consumer demand and confidence benchmarks by economists, as well as changes in the positive forecasts of company management by the end of this year. Over the past two weeks, the S&P 500 has lost 5.06%. The strengthening of the dollar and the tightening of the PREP put additional pressure on high-risk assets.Macro data confirm the persistence of inflationary pressure in the United States. The consumer price index for March is expected to have increased by 1.2% mom and 8.5% YoY. At the same time, there are signs of a softening of the imbalance of supply and demand in the labor market, which may contribute to a slowdown in wage growth as a factor of inflation. In the next two weeks, the focus will be on US GDP growth data for the 1st quarter, data on household incomes and expenditures, business activity and labor market dynamics.Technical pictureThe reporting season for the 1st quarter of this year is in full swing, and almost 80% of S&P 500 companies exceeded market expectations. Last week, the S&P 500 index tried to turn up, but active sales on April 25-26 stopped this attempt. The RSI and MACD indicators confirm the strengthening of the bearish trend, and in the absence of positive triggers in the short term, the index is likely to continue its downward movement.In such a situation, investors begin to actively study their portfolios and review assets. The main thing is to be guided by the rule of optimal diversification, due to which it is possible to increase the stability of investments at the time of correction.Ideas and recommendationsWhen forming a portfolio, special attention should be paid to the energy, industrial, financial, raw materials and technology sectors, as well as look at the securities of manufacturers of essential goods and representatives of the healthcare industry. It is better to choose those issuers that have left or improved their forecasts for the current year, for example, Microsoft, Procter & Gamble, Intuit, Boston Beer, UnitedHealth.JPMorgan Chase & Co. presented mixed results for the 1st quarter of this year, generally reflecting the general trends of the banking sector. The dynamics of net profit fell by 42% YoY and by 20.3% QoQ, which did not meet analysts' expectations. Net interest income continues to grow slowly due to the inflow of funds for deposits and the expansion of the loan portfolio. In addition, the management approved a new $30 billion buyback program, which should be launched from May. Given the continued strong positions of JPMorgan, the recommendation for securities is to "hold" with a target at around $ 150.Gap Inc. announced the departure of the head of the Old Navy brand, a key division for the company. The share of this segment in Gap's revenue is 50%. The company's products belong to the low price segment, and due to delays in supply chains, there is a shortage of goods, which, in turn, leads to lost profits. The change of the CEO of the key direction for GAP may negatively affect the financial performance of the company, which were already under pressure. In this regard, the target price for the securities has been reduced to ...

IntelAs of January 2021, Intel Corporation's report turned out to be quite impressive. The profit on the asset increased by 28%, which in monetary terms amounted to $1.09. However, unlike the analysts' forecast of $0.91, the indicator turned out to be much more profitable.The company's total revenues fell by 3% to $19.5 billion. However, they turned out to be better than the forecast of $18.31 billion. The company has confirmed plans to build a new chip manufacturing plant in the United States, in which it is ready to invest about $20 billion.Regardless of the fact that, according to the report, the figures showed greater attractiveness than those predicted, the paper is still under pressure from sellers. Investors are confident that the company's far-reaching plans will require appropriate costs, that is, it makes no sense to wait for profits in the near future. The management of the enterprise says that the option margin of the enterprise will reach normal indicators only by the end of the five-year plan.Experts still do not recommend buying assets today.Procter & GambleA week earlier, we made a forecast for this company. Now it's worth seeing how much the market situation has changed after the release of the report for the last quarter.The company's net profit in Q2 increased by 10% compared to the same period last year. In monetary terms, this figure amounted to $4.2 billion. Procter Net Sales & Gamble increased by 6% and reached $21 billion. Organic – by 6%. Diluted earnings per asset increased by 13%, which in monetary terms amounted to $1.66. The profit of the option activity for the quarter amounted to 5.1 billion dollars.After the release of the latest report, the company raised sales growth expectations for 2022 from 2-4 to 3-4%. Organic sales – ...

Procter & Gamble (NYSE: PG) raises prices for most of its products due to the rise in the cost of raw materials and transportation.Procter & Gamble has warned retailers about price increases for laundry and textile care products from February 28, and for personal care products from April. In total, the price increase will affect eight categories of goods, and this step will be made not only for the main one for Procter & Gamble of the US market, characterized by high purchasing power, but also abroad.For the second quarter of the current fiscal year Procter & Gamble recorded organic growth of 6% across all five major segments of its business. Half of this growth was due to higher prices even before the aforementioned decision to raise the cost of a number of goods for retailers. The consensus assumed that the corporation's sales would grow by only 3%.The rise in the cost of these products potentially pushes consumers to choose cheaper analogues, but P&G, in our opinion, is confident in its pricing strategy, since, according to management, its competitors face the same trends in prices for raw materials and transportation. At the same time, the impact of exchange rate differences is a bigger blow to P&G due to its broad global presence. In addition, the company believes that consumers of its products are willing to pay more for a brand they know and will not change their preferences. In this regard, the Procter management & Gamble is not afraid of damage to the business or loss of market share.Due to the increase in raw materials and logistics costs, P&G actually recorded a decrease in gross profit by 4 percentage points, but it was leveled by optimizing costs and increasing prices.P&G has improved its forecast for sales growth this year from 2-4% to 4-5%. The cash flow forecast has also been raised. This means that the corporation has a large amount of resources that it can invest in the business even while maintaining large dividend payments and actively repurchasing shares. For this year, the company plans to send $17-18 billion to shareholders against $15-16 billion set in previous goals. Despite the difficulties associated with rising costs, we give an optimistic forecast of P&G's financial performance and raise the target price for its shares to ...

The company is considered one of the world's largest producers of consumer goods. The company produces almost everything for everyday life, from paper towels to cosmetics. This is not the only major manufacturer in this field that differs from competing organizations in scale.The aggregate indicator of the company's market capitalization is close to $390 billion. The list of products includes everything that a person may need at home. Thanks to the high quality of goods and a fairly affordable price, the company has long won the love of consumers. The company has an extensive distribution network, outstanding quality of marketing services, honed to perfection.Procter & Gamble is engaged not only in the sale of already developed products, but also in the continuous improvement of its products. One of the most important features for investors is regular dividend payments, which have been going on for more than 130 years. Over the entire specified period, payments have increased 65 times. Quarterly increased by 10% only over the period of last year, and reached $0.87 per asset.In the last 10 years, the company's business can really be called prosperous. However, the company achieved true records during the pandemic. Then the demand for household goods soared to high levels. The company's management has focused its attention on the process of improving the company in all industries. This allows you to stimulate the profitability of the enterprise.Today, the organization focuses on those products whose production stimulates maximum demand. Over the past few years, PG has made changes in marketing, packaging materials and stabilized pricing policy, determining the cost of almost all groups of goods at the average level. These actions made it possible to increase the company's option margin from 18% to almost 23% over the current 7 years.Business prosperityThe last financial year for the company ended on June 30, 2021. During the period, the issuer received 7% more revenue than in the previous one, which in monetary terms amounted to 76.1 billion dollars. The diluted profit on paper increased by 11%, and reached $5.66.In a new financial milestone, the company started on a positive note. Net sales in the amount of $20.34 billion were reported for Q1 alone, which showed an increase of 5.3% compared to the same period last year. Later, analysts revised their forecasts for Procter & Gamble, and today they are at a position of $19.87 billion in Q2 alone. The company demonstrated strong growth in organic net revenue throughout the reporting quarter, which was driven by a 2% increase in sales and an average 1% increase in commodity prices.The company is considered dominant in its sector, and can dictate pricing policy, which largely compensates for all costs and the growth of inflation. Regardless of the small increase in the value of goods, PG products enjoy consistently high consumer demand. Diluted earnings per asset for Q1 of the current year amounted to 1.2% and increased to $1.61 per quarter. This figure slightly exceeded the forecast of $1.59, and today everyone expects a 3% increase in sales by the end of the 2022 fiscal year.P&G - consistently high dividendsThe company's dividend payments are growing at a high rate. However, is the low dividend payout ratio sufficient to withstand at least a short-term decline in the profitability of the enterprise? Let's assume that payments will grow by 7% every quarter, that is, approximately by $0.93 per asset. In this situation, it is assumed that the company will pay $3.54 per share. If we compare it with the diluted earnings on the same non-GAAP indicator = $5.92 expected by the company by the end of the year, then this corresponds to a ratio of 59.8%. Such a ratio ensures parity between shareholder payments and investments for growth in the future.Balanced asset valueIt's not even worth arguing that the stock is backed up by quite powerful fundamentals. However, does it correspond to the real value? The forward P/E of the enterprise is at the level of 25.7, which is significantly less than the average for the sector, where it is close to 32. This demonstrates the investment attractiveness of the paper.However, it is very important in this regard to consider the prospects for further growth of the company in comparison with competitors. This will help you understand whether the paper is undervalued or overvalued. Note that the company's annual profit of 7% indicates that the indicator is average for the industry. Over the last five years, the paper has grown 2 times, and today it is sold at a price 27 times higher than the forward profit estimate. At the same time, the dividend yield is less than the industry average of 2.1%. The company pays only 55% of its free cash flow on dividends, which allows it to continue increasing the amount of dividend payments. Moreover, this dynamic will continue, even if the company is waiting for a period of stagnation.Throughout 2021, the company has been characterized by stable indicators, and it is expected that this trend should continue this year. The increase in dividend payments for each year makes this asset extremely attractive to investors. However, today the market is directed downwards, and it is too early to talk about the purchase of paper. But you can plan to buy it in the future at a fairly favorable cost. Experts recommend waiting for a position of $ 160, and buying towards the $185 ...

Procter Quotes & Gamble continues to move within the correction and formation of the ”Triangle" model. Moving averages indicate the presence of a short-term bearish trend for PG. Prices have broken up the area between the signal lines, which indicates pressure from buyers of securities. At the time of publication of the forecast, the value of Procter shares & Gamble is 136.99. As part of the PG stock price forecast, we should expect an attempt to develop a correction and a test of the support level near the area of 133.05. Next, a rebound up and a continuation of the rise in the value of securities. The potential target of such a movement is the area above the level of 145.00.An additional signal in favor of a rise in PG quotes will be a test of a broken trend line on the relative strength indicator (RSI). The second signal will be a rebound from the lower border of the ”Triangle " model. Cancellation of the option of growth of quotations of the value of Procter shares & Gamble will be a drop and a breakdown of the level of 130.00. This will indicate a breakdown of the support area, as well as the lower border of the ”Triangle” model and the continuation of the fall into the area at the level of 120.00. We should expect an acceleration of the stock's rise with a breakdown of the resistance area and a close above the level of 140.00, which will indicate a breakdown of the upper limit of the ”Triangle" model.Shares of Procter & Gamble: forecast for July and August 2021Thus, Procter shares & Gamble forecast for July and August 2021 suggests the development of a correction and a test of the support area near the level of 133.05. From where we should expect a rebound and an attempt to continue the stock's rise to the area above the level of 145.00. The trend line test on the relative strength indicator will be in favor of the growth of securities. The cancellation of the PG rise option will be a fall and a breakdown of the 130.00 level. This will indicate a breakdown of support and a continuation of the fall in value to the area below the 120.00 level. As you can see, the technical analysis of Procter shares & Gamble points to a good opportunity to buy from the lower boundary of the ”Triangle" model with minimal risk and good potential ...

Procter & GambleProcter & Gamble is rightly the market leader in consumer goods. P&G originated in 1837 and was initially a fast-growing, not very big business. And after about 20 years, sales exceeded a million dollars.The company has been on the market for more than one hundred and eighty years and over the years has become a huge conglomerate that has introduced many innovations in all the sectors in which it has a presence.The company's products are available in 180 countries and are distributed through grocery shops, closed warehouses, pharmacies, department stores, speciality beauty salons, and pharmaceutical markets.Procter & Gamble is said to have created a brand management system. Thus, the company owns more than 20 brands with sales in excess of $500 million. Incidentally, P&G's capitalization exceeds $350 billion.Procter & Gamble is a dividend aristocrat that has regularly paid dividends for the last 130 years. At the same time, dividend payments have grown steadily over the past 60 years.Colgate-Palmolive, Unilever, Schwarzkopf - these companies are direct competitors of Procter & Gamble, but P&G is ahead of them because it has an unconventional marketing approach and a competent advertising campaign.It should be noted that P&G was one of the first to see the potential of advertising. It started with print advertising and sending out product sample leaflets to customers, then the company switched to radio advertising and with the advent of television advertising became mass-marketed.One of the trump cards of advertising was giving out Pampers nappies to parents of newborns in maternity homes, Procter & Gamble also sent Gillette razors to guys.The company operates in the following areas: beauty products, body care, health, cleaning and washing products and hygiene products for children and women. The company has four divisionsGBU works with customers all over the world. This department is responsible for innovation and financial results.The GBU is responsible for the marketing component of Procter & Gamble's business, studying the characteristics of consumers and suppliers. The department is also responsible for implementing initiatives.GBS provides business support.The CF department is responsible for implementing functional innovations. Financial resultsThe business has benefited from the pandemic and has prospered throughout 2020. When the vaccine became available and large economies opened up, the company continued to grow. So, reports show that the performance in the second quarter of 2021 continues to delight investors. The issuer's revenue increased by 8% compared to the previous year. The revenue figure was also positively influenced by the introduction of new products, which were in demand during the coronavirus pandemic.Net sales amounted to $19.75 billion, experts had expected it to be around $19.27 billion. Net income rose from $3.72 billion to $3.85 billion and adjusted earnings were about $1.64 per paper.Procter & Gamble improved its outlook for 2021. The issuer expects sales growth of 5-6% compared with the previous forecast of 3-4%. Adjusted earnings at the current year-end growth rate will be around 8-10% with a forecast of between 5% and 8%.Digital trading and P&GCEO David Taylor is preparing to expand into the digital space, as this is where the real danger lies. Recently, some young businesses that have succeeded in selling their products online have surpassed Procter & Gamble in many ways. We're talking about Dollar Shave Club and Harry's, which have led to a shrinking market share of P&G Gillette razors in the United States.In December 2020, P&G broke an agreement with Billie, an online seller of women's shaving products. The acquisition of Billie will be a strong boost for the issuer against competitors.At the same time, it cannot be said that the corporation is helpless in the e-services market. At the end of last year, it generated around 11% of its revenue from e-commerce. That's about 6% of P&G's revenue a couple of years ago. Yes, it is hard to call P&G an e-commerce hub, but the company is definitely moving in the right direction.Back in 2019, the company's management first started using the term "smart audience". Procter & Gamble has started collecting information about its customers to connect with each of them using direct contact strategies. Do I buy stock?In recent years, P&G has changed its business to meet the needs of a new generation of customers. To conquer new markets, the company is launching a new studio, P&G Ventures. We can see that Procter & Gamble is willing to evolve with its customers, which ensures the company's long-term stability.Although the issuer's stock is worth adding to its investment portfolio, it is not worth buying just yet. This stock clearly loses out to others, which have shown a growth rate of between 20% and 25% in recent quarters. P&G is currently below that level, although its position is improving.In addition, the stock has an RS rating of 70, which is still below the low of 80.However, as the pandemic is not going to end anytime soon and the critical products P&G deals with will still be in demand, this company will continue to improve its quarterly reports. It is now better to add the stock to the 'waiting list' and wait for favourable market conditions.By the way, that could happen soon. P&G shares underwent a mid-term correction not too long ago. From the level of $145 (November 2020 high), the price fell to support $122, where buyers were able to intercept the initiative and are now storming the resistance zone of $140.Buyers have now lost enthusiasm and if they don't like the next report, the market could start to correct. In that case, the instrument could fall to a range of $125 to $130. And it is this correction that we suggest using to enter the market with a medium-term target of ...