Colgate-Palmolive: Squeezing Out The Gains

The Colgate-Palmolive Company (CL) looks set to record strong growth, given its successful product innovations and restructuring initiatives. Emerging markets remain a key driver for future growth, and the company is spending heavily on marketing and advertisement to edge out competitors in these regions. Bidness Etc rates the stock a buy, but recommends that investors wait for dips, given the company’s high current valuation. In this piece, we will explore why the stock deserves that rating, and discuss possible triggers investors should keep an eye out for.

Introduction

Colgate is classified in the US Household Products Industry. It is one of the largest players in the global household products industry, contributing 7.3%* to total worldwide revenues. Its primary competitors include The Procter & Gamble Company (PG), Kimberly-Clark Corporation (KMB) and The Clorox Company (CLX).

Read More : CL - CLX - KMB

The Procter & Gamble Co., Colgate-Palmolive Co.

The S&P 500 ended the day at 1,762.97, down 0.28%; the Dow Jones Industrial Average closed at 15,618.22, down 0.13%; and the NASDAQ Composite finished at 3,939.86, up 0.08%. Shares in the personal products industry ended on a mixed note, as the broader market fluctuated between gains and losses. The major movers in the industry included The Procter & Gamble Co. PG +0.23%  , Colgate-Palmolive Co. CL +0.05%  , Avon Products Inc. AVP -0.29%  , and The Estee Lauder Cos Inc. EL +0.91%  . AAAResearchReports.com has released full comprehensive research on PG, CL, AVP, and EL.

Shares in The Procter & Gamble Co. finished the day 0.12% higher at $81.43 after fluctuating between $80.85 and $81.74 during the Tuesday's trading session. A total of 4.91 million shares were traded, which is below the daily average volume of 7.35 million. The company's shares have gained 0.84% in the previous three trading sessions and 7.12% in the last one month, outperforming the S&P 500, which has advanced 0.37% and 4.29% during the respective periods. Read more.

Colgate-Palmolive Hits 52-Week High

The shares of Colgate-Palmolive Co. (CL - Analyst Report) reached a new 52-week high of $66.05 on Nov 6, 2013, gaining momentum from the company’s recently reported strong top and bottom-line results for third-quarter 2013 and an impressive full-year outlook.

This seller of consumer products worldwide eventually closed at $66.01 yesterday, amassing a year-to-date return of roughly 27.0%. Average volume of shares traded over the last 3 months stands at approximately 3,020 K.

The company currently trades at a forward P/E of 23.3x, a 14.8% premium to the peer group average of 20.3x. The last traded price is 1.8% above the Zacks Consensus average analyst price target of $64.86. Read more

Church & Dwight Beats on Q3 Earnings

Church & Dwight Co. Inc.’s (CHD) third-quarter 2013 earnings per share of 76 cents beat the Zacks Consensus Estimate (2.7% positive surprise)  by 2 cents. Moreover, the reported figure was 15.2% higher than 66 cents earned in the prior-year quarter.

Among other major consumer product companies, The Clorox Company (CLX) posted a positive earnings surprise of 4.0%.  On the other hand, Colgate-Palmolive Co. (CL) and Procter & Gamble Company’s (PG) reported bottom-line results that were in line with the Zacks Consensus Estimate.

The top line for Church & Dwight improved 11.0% to $804.8 million due to robust performance of the acquired Avid gummy vitamin business. However, it missed the Zacks Consensus Estimate of $814 million. Organic sales increased 1.6% (within the expected range of 1%–2%), driven by 4.7% growth in volume, partially offset by a negative impact of 3.1% due to pricing and adverse product mix. Read more.

Colgate-Palmolive Company (CL) Is Today's New Lifetime High Stock

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. The company operates in two segments: Oral, Personal and Home Care; and Pet Nutrition. The stock currently has a dividend yield of 2.3%. CL has a PE ratio of 24.9. Currently there are 3 analysts that rate Colgate-Palmolive Company a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for Colgate-Palmolive Company has been 2.8 million shares per day over the past 30 days. Colgate-Palmolive has a market cap of $55.5 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.27 and a short float of 1.1% with 2.50 days to cover. Shares are up 14.5% year to date as of the close of trading on Friday. Read more.

Colgate Announces 3rd Quarter 2013 Results

Colgate-Palmolive Company (CL) today reported worldwide Net sales of $4,398 million in third quarter 2013, an increase of 1.5% versus third quarter 2012. Global unit volume grew 5.0%, pricing increased 1.0% and foreign exchange was negative 4.5%. Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 6.0%.

Net income and Diluted earnings per share in third quarter 2013 were $656 million and $0.70, respectively. Net income in third quarter 2013 included $24 million ($0.03 per diluted share) of aftertax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program (the “2012 Restructuring Program”) and costs associated with the sale of land in Mexico.

Net income and Diluted earnings per share in third quarter 2012 were $654 million and $0.68, respectively. Net income in third quarter 2012 included aftertax charges of $7 million ($0.01 per diluted share) resulting from the items described in Table 8. Read more.