Procter & Gamble Co (NYSE:PG) Started with a Sell Rating

Procter & Gamble Co (NYSE:PG) is a company that investors consider a bellwether.  The company has been proven in good times and bad, and we too consider it a company that can survive even the worst of times, but that does not mean that we consider PG to be a good investment; quite the contrary.

This year EPS growth is expected to be -6.17%, but next year that's expected to bounce back to 11.57%.  Growth rates like that would absolutely warrant a multiple like the one placed on shares of PG at this time, but no one is expecting double digit growth from PG going forward.  In fact, the expectations seem to be simply reflecting a recovery from declining to more stable Y/Y EPS.

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Unfortunately for investors in PG, that offers no solace. 

Valuation looks rich, it's going to look rich even if the growth rate expected next year is realized, but there is also plenty of time between then and now.  We consider PG, a company that absolutely can weather a storm, to also be a stock that is more apt to decline going forward.

Technical Summary

Term →Near Mid Long
Bias Neutral Strong Neutral
P1 80.74 77.04 69.66
P2 81.62 81.15 77.87
P3 82.71 85.08 85.77

Long Term Trading Plans for PG

February 29, 2016, 11:26 am ET

The technical Summary and associated Trading Plans for PG listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for PG. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

PG - (Long) Support Plan

Buy over 77.87 target 85.77 stop loss @ 77.61.
The technical summary data tells us to buy PG near 77.87 with an upside target of 85.77. This data also tells us to set a stop loss @ 77.61 to protect against excessive loss in case the stock begins to move against the trade. 77.87 is the first level of support below 81.1469 , and by rule, any test of support is a buy signal. In this case, support 77.87 is being tested, a buy signal would exist.

PG - (Short) Resistance Plan

Short under 85.77 target 77.87 stop loss @ 86.03
The technical summary data is suggesting a short of PG as it gets near 85.77 with a downside target of 77.87. We should have a stop loss in place at 86.03 though. 85.77 is the first level of resistance above 81.1469, and by rule, any test of resistance is a short signal. In this case, if resistance 85.77 is being tested, a short signal would exist.

PG Long Term Analysis

PG EPS Analysis

PG Dividend Chart

PG Revenue chart

PG Growth rate - Quarterly

PG Growth rate - Yearly

PG PE chart

PG PEG chart