The Chaikin Power Gauge RatingTM for this The Procter & Gamble Company $PG stock report is very bearish due to very poor financial metrics, weak earnings performance and negative expert opinions. The rating also reflects very bullish price/volume activity. PG’s financial metrics are very poor due to a relatively low cash flow. PG’s earnings performance is weak as a result of poor EPS growth over the past 3-5 years.
Financial Metrics Rating – Very Bearish
PG’s financial metrics are very poor. The company generates relatively low free cash flow relative to market capitalization and may be overvalued. The rank is based on a high price to book value ratio, high return on equity, high price to sales ratio and relatively low cash flow.
Earnings Performance Rating – Bearish
PG’s earnings performance has been weak. The company has a history of weak earnings growth and has not met analysts’ earnings estimates. The rank is based on poor EPS growth over the past 3-5 years, worse than expected earnings in recent quarters, a relatively poor trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Very Bullish
Price and volume activity for PG is very bullish. PG is experiencing sustained buying and is trading on higher volume than its 90 day average volume. The rank for PG is based on its relative weakness versus the market, positive Chaikin money flow, a negative Chaikin price trend, a positive Chaikin price trend ROC and an increasing volume trend.
Expert Opinions – Bearish
Expert opinions about PG are negative. Analysts are lowering their EPS estimates for PG and insiders are not net buyers of PG’s stock. The rank for PG is based on analysts revising earnings estimates downward, a low short interest ratio, insiders not purchasing significant amounts of stock, optimistic analyst opinions and relative weakness of the stock versus the Soaps- Cosmetics industry group.
