Procter & Gamble (PG, $132.04) beats fiscal Q2 expectations; raised full-year outlook
On Wednesday, consumer goods company reported second quarter earnings that topped analysts’ expectations. The company also boosted its fiscal year profit outlook.
P&G, owner of brands like Tide and Pamper, posted adjusted earnings of $1.64 per share (+15.5% year-over-year) for the quarter ending December, compared to the $1.51 expected by analysts polled by Refinitiv.
Revenue for the quarter came in at $19.75 billion (which is +8% year-over-year), also exceeded analysts’ estimate of $19.27 billion.
The company’s organic sales, which exclude some items like currency effects and acquisitions, rose +8% year-over-year during the fiscal second quarter. All of P&G’s business units experienced growth, with gains driven by the fabric and home care unit along with the health care division.
The company now forecasts organic sales growth of 5% to 6% in fiscal 2021, up from its prior expectation of no more than 5%. It also raised its adjusted earnings forecast to 8% to 10%, up from the previous outlook of 5% to 8%.
P&G expects to buy back as much as $10 billion of its own stock during fiscal 2021, up from a prior estimate of $7 billion to $9 billion.
PG sees MACD Histogram crosses below signal line
PG saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 04, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 05, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on PG as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
PG moved below its 50-day moving average on May 22, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PG crossed bearishly below the 50-day moving average on May 26, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PG entered a downward trend on June 07, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PG's RSI Oscillator exited the oversold zone, of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 46 cases where PG's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PG advanced for three days, in of 364 cases, the price rose further within the following month. The odds of a continued upward trend are .
PG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.698) is normal, around the industry mean (69.015). P/E Ratio (25.189) is within average values for comparable stocks, (182.740). Projected Growth (PEG Ratio) (4.016) is also within normal values, averaging (7.143). Dividend Yield (0.025) settles around the average of (0.027) among similar stocks. P/S Ratio (4.462) is also within normal values, averaging (69.667).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of branded consumer packaged goods
Industry HouseholdPersonalCare
PG and
Correlation & Price change
A.I.dvisor indicates that over the last year, PG has been closely correlated with CL. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if PG jumps, then CL could also see price increases.
