The Procter & Gamble Company (NYSE:PG) reports strong results. This stock is a great buy

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The Procter & Gamble Company (NYSE:PG) reported third quarter fiscal year 2020 net sales of $17.2 billion. Net Sales +5%; Organic Sales +6%; Diluted Net EPS $1.12, +8%; Core EPS $1.17, +10% .Currency-neutral core EPS increased 15% versus the prior year.

Furthermore P&G has returned over $120 billion to shareholders in cash dividends and stock repurchase.

“The strong results we delivered this quarter are a direct reflection of the integral role our products play in meeting the daily health, hygiene and cleaning needs of consumers around the world,” said David Taylor, Chairman, President and CEO.

We will take a look at EPS for Procter & Gamble Company (PG) which is earnings per share (EPS) trailing twelwe months. This is monetary value of earnings per outstanding share of common stock for a company, in this case PG share

In the United States, the Financial Accounting Standards Board requires EPS information for the four major categories of the income statement: continuing operations, discontinued operations,net income and extraordinary items.

Here is the latest data for PG stock as of April 17,2020

  • Price/Earnings trailing 12 months———–24.49
  • Earnings Per Share trailing 12 months—-4.95
  • Most Recent Earnings————————1.42 on 01/23/20
  • Next Earnings Date————————–today

Average Analyst Ratings

A price target is the envisioned future price point of an asset (usually stock) as explained by an investment analyst or a Wall street advisor. The price target is based on many assumptions such as tech levels, cash flow, recent news and supply and demand.  Price targets  change often when the market is volatile and during crisis, that is why you need to stay in the loop and any new information. 

Current Rating for PG according to Barchart
Strong Buy
Based on 13 analysts offering recommendations.
10 Strong Buy
1 Moderate Buy
2 Hold
 

How has NYSE:PG stock performed recently?

A stock’s performance is more than just a set of random numbers. We need to place those numbers in context to understand it properly. On the surface, it feels awesome to see that a stock you invested in has returned 30% Year to date when viewing the starting price versus the ending price, but you need to look a little deeper. Was the stock abnormally low on the first trading day? If so, it could throw the numbers off.

Here are the latest numbers for Procter & Gamble Company stock

Previous Close121.22
Volume12,020,100
Avg Vol13,996,234
Stochastic %K91.97%
Weighted Alpha+11.10
5-Day Change+6.40 (+5.56%)
52-Week Range94.34 – 128.09
 
 
Looking at the numbers we are proceeding to Analysts target prices for PG per share

Analyst Target Prices

HIGH TARGET 143.00
 
MEAN TARGET 127.58
 
LOW TARGET 112.00
52 WK HIGH 128.09
 
52 WK LOW 94.34

Latest insight into the Procter & Gamble Company (NYSE:PG) stock fundamentals

The price-to-sales (P/S) ratio is best calculated by taking a company’s market capitalization  and simply divide it by the company’s total revenue over the trailing 12 months. This number shows how much the market values every dollar of the company’s sales. This ratio can be effective in valuing growth stocks that have yet to turn a profit or have suffered a temporary setback.

So, lets take a look at  the latest PG share values after most recent trading day on NYSE

  • Market Capitalization, $K300,038,528
  • Shares Outstanding, K2,469,453
  • Annual Sales, $67,684 M
  • Annual Income, $3,897 M
  • 60-Month Beta0.41
  • Price/Sales4.42
  • Price/Cash Flow20.68
  • Price/Book6.65

The Price/Cash flow numbers that you can see in the table above(P/S) are a strong stock valuation indicator or multiple that measures the value of a stock’s price relative to its operating cash flow and that is  per share.