PG has bounced off its 40-day moving average seven times in the past three years
The shares of
Procter & Gamble Co (NYSE:PG) are cooling off from a Jan. 5, all-time high of $165.32, but still sport a 15.7% year-over-year lead -- down just 0.1% to trade at $158.47 at last check. Better yet, the equity has just pulled back to historically bullish trendline that may push PG just shy of those records in the coming weeks, in the wake of the company's fiscal second-quarter
earnings report.
The trendline in question is Procter & Gamble stock's 40-day moving average. The shares are currently within one standard deviation of this trendline, after a lengthy period above it. According to new data from Schaeffer's Senior Quantitative Analyst Rocky White, seven similar signals have been observed in the past three years. PG enjoyed a positive return one month later in 86% of those cases, averaging a 2.1% gain. From its current perch, a comparable move would place the stock back above $161.
The brokerage bunch is split towards the security. Of the 12 analysts in question, six carry a "buy" or better rating, while the remaining six say "hold." Should some of those bearish analysts start to change their tune, Procter & Gamble stock could see tailwinds.