Can Procter & Gamble (PG) Stock Build on Recent Gains with Another Earnings Beat?

What's Happening With PG View more about PG >

Consumer goods maker Procter & Gamble (PG) is scheduled to report its fiscal fourth-quarter earnings July 30. Analysts forecast earnings of $1.06, versus $0.94 during the same period last year and the stock is up 24.5% on the year.

Technical Analysis

PG stock was recently trading at $114.45 down $2.06 from its 12-month high and $35.96 above its 12-month low. InvestorsObserver’s Stock Score Report gives PG a 91 long-term technical score and a 91 short-term technical score. The stock has recent support above $107.5 and recent resistance below $115. Of the 15 analysts who cover the stock 9 rate it Strong Buy, 1 rate it Buy, 5 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, PG gets a score of 73 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Procter & Gamble (PG) stock has trended steadily higher over the last 12 months, and it is now trading just pennies below its all-time high. Earnings growth has been modest in recent years of just 2% per annum the last five years, but strategic cost cutting, and product focus has analysts expecting profits to grow at an annual rate of 6.5% for the next five years, and 11.7% for the current quarter. Valuation has become a slight concern with the stock trading at 27 times earnings, so PG is definitely priced for perfection and the company needs to deliver a solid set of quarterly numbers for the stock to build on its recent gains. Earnings have topped estimates each of the last four quarters, and another positive surprise should see PG trade up to a new record high following the report. PG is now trading at $114.45 and analysts have an average price target of $108.07 on the stock, but another strong quarterly report would result in analysts adjusting their targets higher to allow the stock upward momentum.

About Procter & Gamble Company (The)

Since its founding in 1837, Procter & Gamble has become the world's largest consumer product manufacturer. It operates with a lineup of leading brands, including 21 that generate more than $1 billion in annual global sales such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. P&G sold its last remaining food brand, Pringles, to Kellogg in 2012. Sales beyond its home turf represent around 55% of the firm's consolidated total, with around one third coming from emerging markets.

Already a member?

Login to see your Stocks to Watch Trade Ideas.

Not yet a member?

Receive a Morning Action trade idea every market day in the Morning Update, plus Stocks to Watch Trade Ideas every Saturday.

Become A Member