By Peet Serfontein & Khumbulani Kunene
Procter & Gamble Co. is an American multinational consumer goods corporation renowned for its portfolio of trusted brands including personal care, household cleaning, and hygiene products, like Tide, Pampers, Gillette, and Crest.
Founded in 1837, PG is headquartered in Cincinnati, Ohio, with operations in over 70 countries and has gained popularity for its innovative approach to product development, sustainability initiatives, and strong market presence. PG's products are sold in over 180 countries.
From a technical perspective, an improving technical analysis score supports a promising investment opportunity (see the insert on the main chart). The combined rolling average technical score across frequencies reflects the aggregated performance of the stock's technical indicators over different time intervals. An increasing trend in this score indicates a consistent improvement in the stock's technical performance across these timeframes. Additionally, the alignment of positive trends across multiple frequencies demonstrates broad-based strength, reinforcing a bullish stance. Lastly, the price remains above major support, which strongly supports a bullish outlook.
The price is in the Markup phase out of the Wyckoff Price Cycle. This phase signifies a period where the price rises significantly after a period of accumulation. The price forms higher highs and higher lows, reflective of upward momentum and a bullish tone.
According to the MACD indicator, fading downside price momentum, as well as the steep and consistent upward trajectory of the on-balance volume (OBV) indicator, supports the bullish stance.
Share Information
| Share Code | PG |
|---|---|
| Industry | Household & Personal Products |
| Market Capital (USD) | 400.19 billion |
| One Year Total Return | 15.89% |
| Return Year-to-Date | 18.84% |
| Current Price (USD) | 169.93 |
| 52 Week High (USD) | 177.94 |
| 52 Week Low (USD) | 142.5 |
| Financial Year End | June |
| The stock remains above its 200-day simple moving average (SMA) of $165.76. This suggests that the longer-term trend is still positive, which is encouraging. | |
Consensus expectations
(Bloomberg)
| FY24 | FY25E | FY26E | FY27E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 6.59 | 6.95 | 7.43 | 7.94 |
| Growth (%) | 5.39 | 6.97 | 6.86 | |
| Dividend Per Share (USD) | 3.83 | 4.02 | 4.21 | 4.43 |
| Growth (%) | 4.89 | 4.93 | 5.22 | |
| Forward PE (times) | 24.47 | 22.87 | 21.40 | |
| Forward Dividend Yield (%) | 2.36 | 2.48 | 2.61 | |
| Earnings growth is expected to be decent in the short-to-medium term. | ||||
Buy/Sell Rationale
Technical Analysis:
Fundamental view:
| Share Name and Position | DELL US - Buy (Continue to hold) |
CDE US - Buy (Continue to hold) |
CHD US - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 123.78 | 6.23 | 104.14 |
| Current | 135.90 | 110.92 | |
| Movement | +9.8% | +6.9% | +6.5% |
|
A price in wave 5 of the Elliott wave price remains of interest. Remains above its 200-day SMA. Upside momentum is supportive
Our profit target remains $148.00 with a trailing stop-loss at $124.00. Exit the trade by 10 January 2025. |
A price in a developing falling wedge pattern remains of interest. Remains above its 200-day simple moving average. Fading downside price momentum is supportive
Our profit target remains $8.00 with a trailing stop-loss at $5.81. Exit the trade by 18 March 2025. |
A price in a developing rising wedge pattern remains of interest. Remains above its 200-day simple moving average. Upside momentum supports the strategy.
Our profit target remains $114.00 with a trailing stop-loss at $107.00. Exit the trade by 27 May 2025. |
| Share Name and Position | XLK US - Buy (Continue to hold) |
DPZ US - Time exit (Close the position) |
GD US - Stop Loss (Close the position) |
|---|---|---|---|
| Entry | 230.09 | 416.77 | 301.27 |
| Current | 231.33 | 439.80 | 287.99 |
| Movement | +0.5% | +5.5% | -4.4% |
|
A price in wave 5 of the Elliott wave analysis remains of interest. Remains above its 200-day simple moving average. Fading upside price momentum is a concern.
Our profit target remains at $256.00 with a trailing stop-loss at $221.00. Exit the trade by 24 January 2025. |
The stock has reached our time exit date, and we closed the trade. | The stock price breached our stop loss level, and we closed the trade. |
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