1. Home
  2. Live Market Analysis
  3. Stocks Decline in 2022 but what about Procter & Gamble?
Stocks Decline in 2022 but what about Procter & Gamble?

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.

P&G - 26.05.2022 - 3.jpg

The Company Performance

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:

  • Cosmetics up by 2%
  • Pet products up by 3%
  • Health products up by 13%
  • Household goods rose by 7%.

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.

IMPORTANT NOTICE: Any news, opinions, research, analyses, prices or other information contained in this article are provided as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and therefore, it is not subject to any prohibition on dealing ahead of dissemination. Past performance is not an indication of possible future performance. Any action you take upon the information in this article is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of this article.
RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail client investors lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Copyright © 2022 – All rights reserved.

NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange | WKN: A161NR | ISIN: DE000A161NR7.

Any trademarks appearing on this website are the property of their respective owners.

The NAGA Group AG is the holding company of various companies, such as NAGA GLOBAL LLC, NAGA MARKETS EUROPE LTD, NAGA Technology GmbH, NAGA Pay GmbH and has a close link with NAGAX Europe OÜ.

RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading derivatives with this provider. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money.

Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the top-performing traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.

Restricted countries: NAGA Group AG does not provide services for the residents of certain countries, such as Afghanistan, Albania, American Samoa, Australia, Barbados, Belgium, British Virgin Islands, Burkina Faso, Cambodia, Canada (including Quebec), Cayman Islands, Central African Republic, Congo, Democratic People's Republic of Korea, Democratic Republic of the Congo, Gibraltar, Guam, Haiti, Iran, Iraq, Isle of Man, Israel, Jamaica, Jordan, Libyan Arab Jamahiriya, Mali, Monaco, Morocco, Myanmar, Nicaragua, Philippines, Russian Federation, San Marino, Senegal, Serbia, Somalia, South Sudan, Sri Lanka, Syrian Arab Republic, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, United Kingdom, US Minor Islands, US Virgin Islands, USA, Vanuatu, Yemen, Zimbabwe.

Member of NAGA Group AG that is publicly listed in Frankfurt Stock Exchange.
close icon
By using this website, you agree to our cookie policy