Q2 STOCKS TO BUY

Procter & Gamble Stock Rises on Upbeat Earnings, Forecast

Options bulls are targeting PG with fervor today

Deputy Editor
Apr 20, 2022 at 10:59 AM
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Cincinnati-based Procter & Gamble Co (NYSE:PG) raised its fiscal 2022 sales forecast this morning, projecting sales to increase 4% to 5%, as demand for its cleaning and personal healthcare products remains steady. Plus, P&G's fiscal third-quarter earnings of $1.33 per share beat expectations, while revenue came in above analysts' estimates as well. In order to offset inflation, which the company believes will continue into the next quarter, the consumer goods name hiked prices. Meanwhile, it's worth noting PG's ex-div date is tomorrow.

The security is leading the Dow today, last seen up 2.6% at $163.62 at last check. This positive price action has the stock moving back up toward the $165 level -- an area that acted as pressure from December to February, but is also home to PG's Jan. 21, record high of $165.31. Year-over-year, the equity is up 18.8%. 

Analysts have yet to chime in, though when we last checked in with the stock earlier this month, Raymond James had just turned bullish. Now, seven of the 12 in coverage carry a "buy" or better, with five still at "hold." 

The options pits, on the other hand, are brimming with activity this morning. So far, 35,000 calls have crossed the tape, or eight times the intraday average, and almost three times the 12,000 puts exchanged. The May 170 call is the most popular, followed by the 4/22 167.50-strike call, with new positions being bought to open at both. 

 

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