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SUMMARY
This week, the stock markets saw their biggest sell off since the 2008 crisis. There were two distinct trends driving the sell-off. Firstly, the increasing number of Coronavirus cases outside China is causing mounting concerns of a global economic slowdown. Secondly, crude oil prices plummeted by more than 20% after Saudi Arabia increased production.Procter & Gamble (NYSE: PG) stock has fallen around 16% this week, and is down by a total of 18% since early February, considering the fact that consumer product sales are not expected to take a major hit, and sanitary and health care products could, in fact, see a surge in sales.However, going by the trends seen during the 2008 economic slowdown, it's likely that P&G stock could slide further, although at a rate slower than that of the S&P.In this analysis, we take a look at how the company’s stock reacted to the economic crisis of 2008 and compare its performance with the S&P 500.
2020 Coronavirus/ Oil Price War Crisis
Timeline of 2020 Crisis So Far
12/12/2019: Coronavirus cases first reported in China1/31/2020: WHO declares global health emergency.3/9/2020 to 3/12/2020: S&P 500 sees 17% drop over 4 days, as U.S. cases accelerate and oil prices crash, amid Saudi led price war.
P&G Stock Performance Over 2020 Coronavirus/Oil Price War Crisis
P&G stock has declined by over 16% this week and the stock is down by about 18% since February 1, after the WHO declared a global health emergency.
PG Stock: Key Values During 2020 Crisis
% Change for Key Dates: 2020 Crisis
S&P 500 Index Performance 2020 Coronavirus/Oil Price War Crisis
The S&P 500 has declined by 16.5% so far this week and has fallen by 25.4% since February 1, after the global health emergency was declared by the WHO.
S&P 500 Index: Key Values During 2020 Crisis
% Change for Key Dates: 2020 Crisis
2007-08 Financial Crisis
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index9/1/2008 - 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)3/1/2009 - Approximate bottoming out of S&P 500 index1/1/2010 - Initial recovery to levels before accelerated decline (around 9/1/2008)
P&G Stock Performance Over 2007-08 Financial Crisis
P&G stock declined from levels of around $49 in October 2007 (the pre-crisis peak) to levels of around $34 in March 2009 (as the markets bottomed out) and recovered to levels of about $44 in early 2010. Through the crisis, P&G stock declined by as much as 30% from its approximate pre-crisis peak. This marked a slower decline than the S&P which fell by as much as 51%.However, the stock also recovered relatively slowly, rising by 30% between March 2009 and January 2010. In comparison, the S&P rose by about 48% over the same period.
PG Stock: Key Values During 2007-08 Crisis
% Change for Key Dates: 2007-08 Crisis
PG Stock: Cumulative % Change from 10/1/2007
S&P 500 Performance Over The 2007-08 Financial Crisis
The S&P declined from levels of around 1540 in October 2007 to levels of around 760 in March 2009 and recovered to levels of 1120 by January 2010. Through the crisis, the S&P declined by as much as 51% from its approximate pre-crisis peak.
S&P 500 Index: Key Values During 2007-08 Crisis
% Change for Key Dates: 2007-08 Crisis
S&P 500 Index: Cumulative % Change from 10/1/2007
Related Analyses
2007-08 vs. 2020 Crisis Comparison: How Did Procter & Gamble Stock Fare Compared with S&P 500?
Procter & Gamble - PG
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