Procter & Gamble Handed Fresh Bull Note

There's still room aboard P&G stock's bullish bandwagon

Managing Editor
Aug 5, 2019 at 9:47 AM
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Shares of Procter & Gamble Co (NYSE:PG) are trading slightly lower this morning, down 0.9% at $115.41, despite the Dow name receiving a price-target hike to $121 from $106 at Berenberg. This bull note comes less than a week after the company posted a second-quarter earnings beat, resulting in a record high of $121.76 on July 30. 

Cincinnati-based PG has been climbing the charts this year, with long-term support seen at the rising 80-day moving average. However, following the aforementioned second-quarter beat and subsequent all-time high, Procter & Gamble stock has pulled back amid broad-market headwinds, set for a fourth straight day in the red, which would mark its longest losing streak of 2019.

Despite its solid performance on and off the charts, there's still room on P&G's bullish bandwagon. In fact, one-third of covering analysts maintain tepid "hold" ratings on Procter & Gamble stock, and the consensus 12-month price target of $123.73 represents a slim premium to current levels. A round of upgrades or more price-target hikes could add fuel to PG's fire.

Looking at options, there is plenty of opportunity for pessimism to unwind, with the stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) coming in at 1.18. This reading ranks in the 99th annual percentile, meaning puts have been bought to open over calls at a faster-than-usual clip in the past 10 weeks.

Plus, now looks to be an attractive time to speculate on Procter & Gamble stock with near-term options. This is per the stock's Schaeffer's Volatility Index (SVI) of 17%, which registers in the 22nd percentile of its annual range.


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