Procter & Gamble (NYSE: PG) shares have advanced more than 7% in the last thirty days, and the current price stands around $137. Procter & Gamble reported better than expected Q3 results this Tuesday, and according to the technical analysis, shares of this company remain in a buy zone.
Fundamental analysis: Citigroup lowered its rating on P&G to neutral
Procter & Gamble reported Q3 2021 results this week; total revenue has increased by 5.2% Y/Y to $18.11B while Q3 GAAP EPS was $1.26 (beats by $0.07). Total revenue has increased above the expectations (+$150M), and the company remains focused on the strategies that could deliver balanced growth over the long term.
“Procter & Gamble delivered another quarter of solid top-line, bottom-line, and cash results in what continues to be a challenging operating environment. We remain focused on executing our strategies of superiority, productivity, constructive disruption, and improving P&G’s organization and culture,” said David Taylor, Chairman, President, and Chief Executive Officer.
Procter & Gamble has proven its stability during the Covid-19 pandemic, and the third-quarter earnings results showed that this company is moving in the right direction.
Procter & Gamble has an excellent position in the market, but the current share price does not provide an attractive entry point for long-term investors, in my opinion. Procter & Gamble’s future cash flows have already been priced into the valuation of its shares, and with a $337B market capitalization, this company remains expensive.
The book value per share is less than $20, and there are certainly better long-term investment opportunities at the moment. It is also important to mention that Citigroup lowered its rating on P&G to neutral this week on concerns that earnings over the next couple of
