Procter & Gamble Co (PG)

PG (NYSE:Consumer Non-Durables) EQUITY
$85.72
pos +0.00
+0.00%
Today's Range: 85.15 - 85.65 | PG Avg Daily Volume: 7,274,800
Last Update: 07/25/16 - 1:49 PM EDT
Volume: 2,940,118
YTD Performance: 7.95%
Open: $85.53
Previous Close: $85.72
52 Week Range: $65.02 - $86.89
Oustanding Shares: 2,661,851,865
Market Cap: 226,949,490,010
6-Month Chart
TheStreet Ratings Grade for PG
Buy Hold Sell
A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F
TheStreet Ratings is the source for accurate ratings that you can rely upon to make sound, informed financial decisions. Click here to find out about our methodology.
Analysts Ratings
Historical Rec Current 1 Mo. Ago 2 Mo. Ago 3 Mo. Ago
Strong Buy 10 9 8 8
Moderate Buy 1 1 1 1
Hold 5 6 6 7
Moderate Sell 1 1 1 1
Strong Sell 1 1 1 1
Mean Rec. 2.00 2.11 2.18 2.22
Latest Dividend: 0.67
Latest Dividend Yield: 3.14%
Dividend Ex-Date: 07/20/16
Price Earnings Ratio: 26.90
Price Earnings Comparisons:
PG Sector Avg. S&P 500
26.90 26.70 12.90
Price Performance History (%Change):
3 Mo 1 Yr 3 Y
5.89% 6.05% 5.54%
GROWTH 12 Mo 3 Yr CAGR
Revenue -8.20 -0.10 -0.03
Net Income -39.40 0.00 -0.01
EPS -40.10 -0.30 -0.13
Earnings for PG:
EBITDA 16.95B
Revenue 76.28B
Average Earnings Estimates
Qtr (06/16) Qtr (09/16) FY (06/16) FY (06/17)
Average Estimate $0.74 $1.00 $3.62 $3.93
Number of Analysts 10 7 14 14
High Estimate $0.79 $1.04 $3.67 $4.05
Low Estimate $0.71 $0.96 $3.59 $3.85
Prior Year $1.00 $0.98 $4.02 $3.62
Growth Rate (Year over Year) -25.90% 1.90% -9.95% 8.46%
Chart Benchmark
Average Frequency Timeframe
Indicator Chart Scale  
Symbol Comparison Bollinger Bands
Let me give you the unassailable themes.
All of these add up to a level of insecurity on the part of sidelined money.
Valuations are stretched in certain names and industries, so some profit-taking appears in order.
Bullish
Jun 15, 2016 | 6:58 AM EDT
PG was initiated with a Buy rating, Jefferies said. $95 price target. Company can return to 3%-plus organic sales growth in the coming ...
The cybersecurity giant's share price looks pretty insecure.
Sky-High Price-to-Earnings Ratios. Wall Street might historically view consumer staples as "defensive," but many have offensive valuations these days. Those have stemmed from an extended low-interest-rate period (which is likely to end shortly), coupled with the incorrect perception that consumer staples' profits will be immune to the soft global-economic backdrop. Yields That Won't Provide Adequate Support. Consumer staples' dividend yields no longer provide the safety net that many investors believe. As we saw with Campbell's, a good dividend yield provides little protection when fundamentals sour -- as they likely will for many firms in the more-competitive global backdrop that I expect. Inflation is rising, and with that will inevitably come higher interest rates, meaning that the sector's current yields will provide little support. Emerging-Market Profit Pressures. Don't view Campbell's as an outlier. Generic competition, a potentially strengthening U.S. dollar and higher input costs due to rising commodities prices all represent continuing profit threats for the sector. P/E/G Rates are Elevated. P/E/G rates -- or stock valuations relative to the potential for reduced or pressured secular profit growth -- serve as another significant headwind for consumer staples. In fact, the sector's P/E ratios are obscene in certain cases relative to expected five-year growth rates, as this chart shows: Company                              P/E*               Div. Yield         5-year Expected EPS Gain Campbell                              27.1               2.08%           &nb
Interest rates. Banks are rate-sensitive animals. With balance-sheet imbalances of rate-sensitive vs. liability-sensitive assets, all banks are suffering from our current low-interest-rate environment. They would benefit from higher rates and a more positive slope to the yield curve -- but while I believe interest rates are near cycle lows, I don't expect any meaningful pick-up in rates for some time. I don't expect the yield curve to resume a more normal slope any time soon, either. Politics. Donald Trump has out-trumped all 16 of his rivals to become the presumptive Republican presidential nominee, while it the odds of a Hillary Clinton Democratic nomination are rising. These developments produce a less-favorable political backdrop for bank stocks. Profit woes. Bank profits will continue to come under pressure and seem unlikely to meet 2016 consensus expectations. Given the above, I sold my bank longs into the sector's February-to-April rally, and I recently shorted the Financial Select Sector SPDR ETF (XLF) as well. I'm also shorting Metlife (MET) and Lincoln National (LNC), as I believe that life insurers face reinvestment challenges. (This week's much-weaker-than-expected earnings reports from insurers only confirmed my thesis, so I boosted my MET and LNC shorts.) I remain long on Oaktree Capital (OAK) and Hartford Financial (HIG) -- but as noted previously, I'm short on Berkshire Hathaway. The Times They are a Changin' for Warren Buffett's firm. My overall sentiment: Negative (down from a previous Positive) Health Care/Biotech The political battle over health care intensified over the past few months as Democratic and Republican presidential aspirants vied for attention and popularity. And if I'm correct in predicting a probable Hillary Clinton presidency (she's currently the general-election frontrunner), the industry's

How to Trade a Weak Dollar Real Money Pro($)

Commodities and emerging markets tend to benefit from a weak dollar.

My Takeaways and Observations Real Money Pro($)

The U.S. dollar continues to weaken. Crude oil fell by $1.05, trading at $44.87. Nat gas was a dime lower. Gold rose by another $5 and is approaching $1,300. The precious metal did trade over $1,300 earlier in the day. Agricultural commodities: wheat -4.50, soybean +8.00, corn -3.75 and oats flat. Lumber -2.60. Bonds got taken to the woodshed. iShares 20+ Year Treasury Bond ETF (TLT) was down about a beaner. The yield on the 10-year U.S. note added three basis points to 1.85% and the long bond climbed four basis points in yield to 2.70%. Municipals sold off, but closed-end municipal bond funds were mixed to higher. High yield sold off. However, Blackstone/GSO Strategic Credit Fund (BGB) traded up a nickel and is approaching $14. Banks prospered, led by JPMorgan Chase (JPM). Brokerages were strong -- Morgan Stanley (MS) up 20 cents and Goldman Sachs (GS) $2.50. Life insurance responded well to higher rates and lower bond prices, with smart gains in Lincoln  National (LNC), MetLife (MET) and HIG. Energy stocks were mixed. Schlumberger (SLB) was a standout loser, though Exxon Mobil (XOM) was up 50 cents. Old media was mixed. IBM (IBM), despite Warren's endorsement, was slightly lower, while Microsoft (MSFT) was up 50 cents. Retail stocks rebounded, with short Nordstrom (JWN) recovering a portion of Friday's big loss. Media thrived. Disney (DIS) was up $1.10 and Comcast (CMCSA) 55 cents. Consumer staples did well, led by former long Procter & Gamble (PG). Biotech, the object of affection to value players this year, continued to be pressured. iShares Nasdaq Biotechnology (IBB) was down a couple. VRX recovered two-thirds of its nearly $4 loss today. My biotech basket continues to roll over. Autos were up small -- General Motors (GM) and Ford (F) a dime higher, each. Ag equipment was flat. (T)FANG recovering well, led by Amazon (AMZN), which seemingly got an endorsement from Warren Buffett over the weekend and was up $23. By contrast, Tesla (TSLA) was down by $2, though it was lower. NOSH had all four components to the good, including Starbucks (SBUX), a short. CRABBY's six components also were all higher. In terms of miscellaneous stocks, Apple (AAPL) continues to be rotten to the core, down 50 cents. Twitter (TWTR) was awful and Potash (POT) was not much better, though rival Monsanto (MON) was up. Radian Group (RDN) and Oaktree Capital Group (OAK) were flat, as was DuPont (DD) after a big upside move. Warren's fav (but my short!) Coca-Cola (KO) was up 30 cents. iShares China Large-Cap ETF (FXI), last week's Trade of the Week, was off a dime after a very weak Friday. Here is some good stuff on Real Money Pro today: Jim "El Capitan" Cramer on the U.S. dollar.   Robert "Not Rita" Moreno on the dreaded Coppock Curve!  Bret "Meet George" Jensen on four possible biotech targets.  The Count's take on the Berkshire Hathaway meeting.  RevShark on ... what is the market theme and on the lack of clear market leadership (a theme others like Jimmy and myself are concerned about)? 

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