Procter & Gamble stock price forecast for Q4 after solid FQ1 results

By:
on Oct 19, 2021
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  • Procter & Gamble shares on Tuesday edged lower despite announcing solid FQ1 results.
  • The company reported its most recent quarterly results before markets opened, beating analyst estimates.
  • The company maintained its FY2022 guidance with core earnings median below Street expectations.

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On Tuesday, Procter & Gamble Co (NYSE:PG) shares declined despite announcing solid fiscal first-quarter, 2022 results. The company reported its most recent quarterly revenue and earnings, beating analyst expectations. The company also reiterated its FY2022 guidance, with core earnings slightly below forecast.

PG posted FQ1 GAAP earnings per share of $1.61, beating the consensus Street expectation of $1.59. On the other hand, revenue for the quarter grew by 5.3% to $20.34 billion, $470 million ahead of estimates.

It also maintained its FY2022 core earnings per share forecast of $5.83 to $5.99, implying a median of $5.91, which is slightly below the average for analyst forecasts of $5.93.

Is it time to sell PG shares?

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From an investment perspective, Procter & Gamble shares trade at a steep P/E ratio of about 25.88 and a forward P/E of 22.33. Therefore, it could still be an attractive option for value investors.

Analysts also have a consensus earnings growth forecast of 7.24% next year and an annual average of about 7.03 for the next five years. Therefore, growth investors may opt for alternatives in the market.

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The stock is up about 3% this year compared to the S&P 500 Index’s gain of more than 21%. As a result, it still has room to run before catching up with the average for the top 500 companies.

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Source – TradingView

Technically, Procter & Gamble shares seem to be trading within an ascending channel formation in the intraday chart. However, the stock has recently pulled back to avoid entering into overbought conditions.

As a result, the PG stock now looks to have slipped towards oversold, thus creating an opportunity for a rebound. Therefore, investors could target potential rebound profits at about $144.27, or higher at $146.15.

On the other hand, if the pullback continues, the stock could find support at $140.70, or lower at $138.81.

It could be time to buy

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In summary, PG shares appear to have slipped closer to the trendline support following a recent decline. 

Therefore, given the company’s reasonable valuation multiples, it could be time to buy ahead of a potential rebound. 

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