Procter & Gamble (PG) Stock Will Test Record Highs Following Q1 Report

What's Happening With PG View more about PG >

Consumer goods maker Procter & Gamble (PG) reports fiscal third-quarter results before the market open April 23. The company is expected to show earnings of $1.04 per share on revenue of $16.38 billion, versus $1.00 on $16.3 billion during the same period last year.

Technical Analysis

PG stock was recently trading at $106.2 down $0.50 from its 12-month high and $35.47 above its 12-month low. InvestorsObserver’s Stock Score Report gives PG a 91 long-term technical score and a 93 short-term technical score. The stock has recent support above $100 and recent resistance below $106.50. Of the 18 analysts who cover the stock 9 rate it Strong Buy, 1 rate it Buy, 8 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, PG gets an overall score of 72 from InvestorsObserver’s Stock Score Report

Analysts' Thoughts

Procter & Gamble (PG) stock has moved steadily higher over the last year and shares are now trading at a record high. Earnings growth has been modest at just 0.8% per annum over the last five years, but the company has made good moves and analysts see bottom line growth of 6.3% annually over the next five years which has brought enthusiasm into the stock. The valuation is a bit high with a forward P/E of 22, but the company has a long history of posting positive earnings surprises which if continued would lead to even stronger earnings growth moving forward. The street expects another earnings beat this quarter with a whisper number of $1.08 for 8% year over year growth. Should the stock hit the whisper shares will build on their recent gains despite the stock’s valuation. Analysts have an average price target of $101.15 on the stock, but another beat would lead to a wave of price target increases as the stock climbs to new highs.

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.

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