The stock is hitting new all-time highs on the move, as the company's non-GAAP earnings of $1.10 per share came in 5 cents ahead of estimates for its fiscal fourth quarter. Revenue of $17.1 billion grew 3.6% year-over-year and beat analysts' expectations by $240 million.
The headline numbers here are strong, but I would consider them minor victories vs. some of the company's other metrics.
Organic sales surged 7%, the company's best result in more than a decade and easily topping expectations for 4% growth. Gross margins increased despite currency headwinds, free cash flow was strong and full-year guidance came in ahead of estimates. Further, management said it anticipates buying back $8 billion worth of stock in the coming year.
Does this pave the way for more gains?
Trading Procter & Gamble Stock
Above is a weekly chart of Procter & Gamble stock, which emphasizes just how strong this name has been. Shares are up 31.5% so far in 2019, 50% over the past year and almost 70% over the last 15 months.
The march has been intense and for patient bulls, quite rewarding. After reclaiming its 10-week moving average in June of 2018, the stock has maintained above this moving average every week since, with the exception of two weeks. Both times have presented excellent buying opportunities, as P&G went on to far higher prices.
So what now?
Investors may want to wait for the stock to test its 10-week moving average before initiating or adding to their position. Such events have been often and advantageous over the past year, and seems even more so now with Procter & Gamble stock running into uptrend resistance (blue line).
A potential pullback to the $112 to $113 area will likely draw in buyers, given that this area was resistance in June before turning to support in July. Below the 10-week moving average is uptrend support (purple line), which may be a more attractive buying opportunity should it hold as support and if we get a larger correction in PG stock.
Below could summon the stock's 38.2% one-year retracement, which is near $102.
The bottom line: While Procter & Gamble stock can and likely will continue to rally to new highs throughout the year, waiting for a better price may prove wise.
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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.