Throughout this year, the US stock market has been on a significant decline so far, affecting pretty much every market and industry. But, what does this have to do with Procter & Gamble? P&G stocks are actually classified as “defensive stocks”, meaning that they should perform better than other stocks during poor stock market conditions. So, are all stocks actually declining?
Of course not all stocks decline each day of a crash, but, generally speaking, it does tend to affect the whole market. This year, Procter & Gamble stocks have actually declined by 10.80%, which may seem like a lot until you compare it with other popular stocks. Below is a list of the top companies’ stock performances in 2022 to date:
After looking at the performance of these main US stocks, we can see that Procter & Gamble stocks have lived up to their reputation pretty well. These shares are also one of the only ones that have seen a significant bullish trend during the stock market crash. P&G stock saw a 15.31% bullish trend throughout March and early April.
Over the past two weeks, P&G stock has struggled and seen a full price correction. We’ve seen it increase slightly over the past week, and today’s futures market is pointing towards a slightly healthier stock market with the SNP500 increasing by 0.75% premarket. Nonetheless, traders should exercise caution until the market has opened and this movement is confirmed.
P&G share price has currently declined to $145 and rebounded from $139. This range has previously acted as the point of support. The bullish trend formed at this level in March 2022, November 2021, and July 2021. However, traders should be cautious of the price declining further below this point - something we’ve already seen in the past.
When looking at the firm’s performance we can see positive figures in their latest earnings report. Procter & Gamble’s net profit increased by 4% and hit $3.4 billion compared to $3.2 billion a year earlier. The Earnings per Share (EPS) indicator increased to $1.33 from $1.26 a quarter earlier, which was also better than the forecasted $1.29. Revenue for the quarter was $19.4 billion, up 7% from $18.1 billion a quarter earlier. Overall, P&G’s performance has remained positive.
One of the reasons why P&G stocks are classified as ‘defensive stocks’ is that the company is not limited to one market. Below is a list of their sales performance:
In its forecast for the end of 2022, the firm predicts sales to increase by 4–5%, which is more than the previous prediction of 3–4%, and according to the company’s initial estimates, organic sales will increase by up to 7%, while profit will remain at the same level.
The company's last dividend payment took place on May 16, and shareholders received $0.9133 per share, up from the previous $0.8698, but the average yield is still a modest 2.23% per annum. Increasing the dividend payment to shareholders is known to potentially increase future demand as other traders may wish to benefit.
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