Trading Procter & Gamble’s Defensive Breakout

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With global stock market indices trading at record highs, some investors are now repositioning and hedging their portfolios for a possible decline.

This sector rotation from growth stocks to defense stocks may lead investors to companies like Procter & Gamble – a major consumer base stock preferred by institutions.

Analysts have become increasingly bullish on the stock in recent months, with some setting new record highs in the following quarters. Learn more, including how to trade it below.

Stock: Procter & Gamble Co.
Exchange: NYSE
Symbol for Invest.MT5 Account: PG
Symbol for Trade.MT5 Account: #PG
Idea Date: November 24, 2021
Timeline: 1 – 3 months
Entry level: $ 149.00
Target Level: $ 168.00
Stop Loss Level: $ 137.00
Position Size for Invest.MT5 Account: Maximum 7%
Risk: High

* The Invest.MT5 account allows you to buy real stocks and shares of 15 of the largest stock exchanges in the world.

* The Trade.MT5 account allows you to speculate on the price direction of stocks and stocks using CFDs. This means you can trade long and short to possibly profit from rising and falling stock prices. Learn more about CFDs in this article How to Trade CFDs.

Source: Admirals Contract Specification

Every trade is high risk and you can lose more than you risk in a trade. Never invest more than you can afford to lose because some trades will lose and some trades will gain. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.

Why Trade Procter & Gamble Stocks?

There are various reasons why the market is becoming bullish at Procter & Gamble, let’s take a look at a few.

Reason 1: Defensive action was used to protect against a slowing economy

Defensive stocks are stocks that tend to be stable during the different phases of the business cycle. The opposite of defensive action is cyclical action; these are stocks that work well only when the economy is growing.

Procter & Gamble is viewed as a defensive action because no matter what the economy does, people will still have to buy its goods, which are classified as consumer commodities. This includes brands like Pampers, Pantene, Ariel, Fairy, Oral-B, Gillette and many others.

With most global stock market indices trading at record highs, some investors will use sectoral rotation strategies (shifting from growth to defensive positions) to protect against a possible lower correction.

Reason 2: High-priced power stocks are favored now

According to research by Goldman Sachs, stocks with high price power outperformed those with lower margins. Procter & Gamble is a stock with high pricing power because they have the ability to increase their prices to offset other costs.

For example, the recent global supply chain crisis has forced Procter & Gamble to increase the price of its goods, thus offsetting any possible impact on its fund. With new key restrictions in Europe, these types of stocks are likely to be required.

Reason 3: 131-year history of paying dividends is hard to beat

Procter & Gamble has a long, reliable history of paying dividends. These are rewards paid to shareholders for investing in the company and usually come from any profits the company has made.

At the time of writing, that of Procter & Gamble dividend yield was 2.37%. The company also has a history of increasing its dividend and it has a positive annual net income to do so. These types of stocks are favored by income investors looking for dividends as income.

With the Admirals Invest.MT5 account you can invest in stocks and collect dividend payments as an additional income stream.

What do analysts anticipate for Procter & Gamble Stock?

According to analysts surveyed by tthe Wall Street Journal, there is currently a higher amount of purchase estimates the stock than selling estimates. Although it is not that high, the most interesting aspect is the fact that the number of purchase estimates has increased over the last three months.

Source: WSJ, 22 November 2021

Sample Business Idea for Procter & Gamble

An example business idea for Procter & Gamble shares could be the following:

  1. Buy the shares during a break above $ 149.00
  2. Aim for the highest analyst estimate at $ 168.00
  3. Put a protective stop loss at $ 137.00
  4. Keep your risk small at a maximum of 7% of your total account.
  5. Timeline = 1 – 3 months
  6. If you buy 10 shares of Procter & Gamble:
    1. If target is reached = $ 190 profit
    2. If stop loss achieved = $ 120 loss

Risk management is one of the most important aspects of trading successfully. You always have to know how much you might lose in a business.

The example figures above were calculated using the Admirals Trading Calculator, which allows you to see what your profit or loss could be based on the numbers you entered – a great tool for traders!

How to Buy Procter & Gamble Stocks in 4 Steps

With Admirals, you can buy shares in American companies like Procter & Gamble with a low commission of only $ 0.02 per share and a low minimum commission of only $ 1.

  1. Open an account with Admirals to access the Chamber of Merchant.
  2. Click Trade on one of your live or demo accounts to open the online platform.
  3. Find Procter & Gamble at the bottom of the Market Watch window and drag the symbol onto the chart.
  4. Use the one-click trading feature, or right-click and open a trading ticket to enter your trading size, stop loss and take profit level.

Source: Admirals MetaTrader 5 Website. Past performance is not a reliable indicator of future outcomes, or future performance.

Click the banner below to buy Procter & Gamble shares today! ▼ calendar calendar

Do You See Procter & Gamble Moving Differently?

Remember that all analytical and business ideas are based on the personal point of view and experience of the author.

If you believe there is a higher chance that the stock price of Procter & Gamble will move lower, then you can also trade a short of a trading account CFD (Contracts for Difference), which Admirals also provides.

INFORMATION ON ANALYSIS MATTERS:

The data provided provides additional information on all analyzes, estimates, forecasts, forecasts, market reviews, weekly prospects or other similar estimates or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark ( hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:

  • This is marketing communication. The content is published for informational purposes only and is in no way considered as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on trading prior to the dissemination of investment research.
  • Any investment decision is made by each client solely, while Admirals is not liable for any loss or damage arising from such decision, whether on the basis of the content or not.
  • To protect the interests of our clients and the objectivity of the Analysis, Admirals have established such internal procedures for the prevention and management of conflicts of interest.
  • The Analysis is prepared by an independent analyst, Jitan Solanki (analyst), (hereinafter “Author”) based on their personal assessments.
  • While every reasonable effort is made to ensure that all sources of content are reliable and that all information is presented, as far as possible, in an understandable, timely, accurate and complete manner, Admirals does not guarantee the accuracy or completeness of any information. contained within the Analysis.
  • Any kind of past or model performance of financial instruments indicated within the content shall not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument can both increase and decrease and the preservation of the value value is not guaranteed.
  • Used products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please make sure you fully understand the risks involved.

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