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- 1 PG stock price: The stock has experienced a sudden free fall from mid-September.
- 2 The stock has given over 15% return in a year, see whether there is an investment opportunity
- 3 The current stock price is claiming a support level, know the levels in the article below.
Procter & Gamble Co. (NYSE: PG) facilitates the provision of branded consumer packaged goods. Operating through segments like Beauty, Grooming, Health Care, Fabric and Home Care, Baby, Feminine, and Family Care.
How Did the Company Increase Its Sales Growth
During the recent quarter, P&G experienced a slight growth of 5.32%. Along with the sales, the firm saw a significant rise in its gross margin, which grew by 14% on a year-on-year basis. The report revealed that this growth was experienced due to the company’s plan to pass on the Cost of Goods Sold (COGS) to the end customers.
This growth continued till the net profit, resulting in the company’s earnings per share (EPS) growth of 13% to reach $1.37. Following this above strategy, the management is projecting a 6% to 9% increase in EPS growth for the financial year 2024.
The Brilliance of Management
With a growth in the net profit, Return on equity is also at a significant level of 31.3%. Along with it, the company is earning a 20% return on the capital it has been investing. It means every 3.6 years, it doubles the capital returns. The financial management’s brilliance provides such returns while distributing over 62% of the net profits as dividends. It makes up a yield of 2.43% on the average stock price this year.
Technical Analysis and Prediction of the PG Stock Price
The PG stock price has just fallen after breaking a bullish trend in September as the bears reclaimed the resistance level of $152. The trend has slowed as the bulls have reclaimed the support level of $142.
The current stock price is $143, just above the support level. The 50-day exponential moving average is $150, while the 150-day exponential moving average price is $14. On the other hand, the Relative strength index is at the oversold level of 26, indicating that the bears have a high buying pressure.
The PG stock price prediction is bullish, as suggested by the RSI and current support level. The target price will be at $151, which is the zone of the immediate resistance. However, if things go south, the support will be broken, and the next target will be $136
Conclusion
Procter & Gamble Co. (NYSE: PG) has experienced gross margin growth due to some decisions taken by their management. This growth has also benefited shareholders as the EPS and ROE have increased. The PG stock price broke a trendline and fell to its current support level. The price prediction, however, is bullish with a specific target price.
Technical Levels
Support: $142, and $136
Resistance: $152, and $157
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
