Procter & Gamble share price forecast ahead Q2 results

Procter & Gamble Company (NYSE: PG) is scheduled to announce second-quarter earnings results on Wednesday, January 19, before the market opens.

Procter & Gamble shares have weakened from $161 to $156.9 since the beginning of 2022 year, and the current price stands at $159.81.

Evercore ISI sees upside potential

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Procter & Gamble will announce second-quarter earnings results on Wednesday, and according to research company Evercore ISI, Procter & Gamble is one of the best opportunities for investors for the 2022 year.

Robert Ottenstein, an analyst from Evercore ISI said that PG’s valuation is not reflecting improved fundamentals as consumer behavior trends have elevated demand for 40% to 50% of the firm’s products.

Procter & Gamble is better positioned for a recession than many investors fear, and Evercore ISI sees upside potential for the upcoming quarters. Robert Ottenstein added:

We believe P&G is well-positioned to gain share on and off-line thanks to its best-in-class supply chain, iconic products, and ability to lean-into commercial opportunities. Critically, the firm’s move to de-matrix the organization has allowed it to operate with greater agility and accountability.

Procter & Gamble reported better than expected first fiscal quarter results in October; total revenue has increased by 5.3% Y/Y to $20.34 billion, which was more than expected, while the GAAP EPS was $1.61 (beats by $0.02).

During its first-quarter earnings report call, the company’s management announced that it expects the fiscal year 2022 all-in sales growth in the range of two to four percent compared with a prior fiscal year.

The company’s management also maintained its outlook for organic sales growth in the range of two to four percent, while the core earnings per share growth for fiscal 2022 should be in the range of three to six percent versus fiscal 2021.

Procter & Gamble declared a $0.8698/quarterly share dividend last week, which will be payable on February 15 to stockholders of record as of January 21, 2022.

Procter & Gamble has a strong position in the market and continues to improve its business for long-term growth and advantage.

Technical analysis

The strong support level stands at $150; $165 and $170 represent the current resistance levels. If the price jumps above $160, it will signal to trade Procter & Gamble shares, and the next target could be $165.

On the other side, if the price falls below $150, it would be a strong “sell” signal, and the next target could be at $140.

Summary

Procter & Gamble is scheduled to announce second-quarter earnings results on Wednesday, January 19, before the market opens, and if the company posts strong results, the share price could be above the current levels. Procter & Gamble has a strong position in the market and continues to improve its business for long-term growth and advantage.