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After several steep declines this year, P&G is still set for uptrend
Procter & Gamble Company is a multinational corporation that focuses its business on consumer goods.
The headquarters of the company is located in Ohio, and this was where the company decided back in 2014 to release 100 brands from its portfolio and put all their efforts on the 65 remaining brands.
This move has changed the direction of the stock back then, allowing it to recover from a declining slope. This momentum lasted for quite some time before the stock started to decline which coincided with the appearance of COVID, but the company only took it as energy and amidst the pandemic, the stock continued to climb to its current record value.
This year, the stock encountered a lot of setbacks and stumbled along the way. Now that it is hovering near record levels, many are wondering if the stock would be able to break through or would it start trading sideways or even lower.
Take note that the company showed their Q2 earnings report and even with the inflation being felt on the abundant, the company still performed favourably, with its growth recording 6% versus values from a year ago. Although it could be attributed to the pandemic backdrop, the changes the company underwent way back in 2014 is now showing its effects.
The company being rightsized to prioritize solely on the performing aspects. It easily hit the marks for consensus, with guidance at 2-4% while the earnings per share reached the goal of 6-9%. Optimism is currently leading the market direction but analysts are suggesting that the stocks are bound to move lower again since the stocks have reached the saturation point.
Here's why others believe that the stock can still move higher despite ongoing inflation that lingers in the economy. The stock, if we are to take the movement into account, had always manage to comeback stronger, and now that it is on this trajectory, investors believe P&G will do it again.
This was especially true after the steep increase in 2019. All in all, investors of P&G should just continue to hold on to their shares as the company's performance will only get better after weeding out the unwanted.
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