Sell Procter & Gamble Ahead Of Earnings

Josh Arnold
24.79K Followers
(8min)

Summary

  • Procter & Gamble's stock looks weak technically, with no signs of a reversal and potential further declines, especially with poor seasonality in January and February.
  • Fundamentals don't support a higher price; EPS growth is modest, and negative revisions dominate. Organic sales and margins are critical for the upcoming earnings report.
  • The strong US Dollar poses a significant headwind, potentially leading to negative guidance revisions, impacting PG's revenue and earnings from international markets.
  • The valuation is not attractive at 23X forward earnings, and the dividend yield is average. I have a Sell rating ahead of the earnings report.

Logo of Procter and Gamble.

RobsonPL

Consumer staples giant Procter & Gamble (NYSE:PG) is set to report earnings next Wednesday, and it is doing so from a position of weakness as I see it. With the stock looking terrible ahead of the report, it would

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This article was written by

24.79K Followers
Josh Arnold has been covering financial markets for a decade, utilizing a combination of technical and fundamental analysis to identify potential winners early on in their growth cycles. Josh's focus is mainly on growth stocks. His goal is efficient and profitable use of capital, which overly rigid buy-and-hold strategies do not allow. Josh is the leader of the investing group Timely Trader where he focuses on limiting risk and maximizing potential reward. Features of Timely Trader include: real-time alerts, a model portfolio, technical charts, sentiment indicators, and sector analysis to find the best trading opportunities. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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