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Colgate-Palmolive Co. (CL - Analyst Report) is set to declare second-quarter 2013 results on Jul 25. In the last quarter, the company’s adjusted earnings were up 6% year over year and in line with the Zacks Consensus Estimate. Let us now look at how things have developed for the imminent announcement.

Growth Factors in the Past Quarter

The year-over-year improved top-line results for first-quarter 2013 primarily benefited from a rise in global unit volumes and pricing, partially offset by a negative impact from foreign exchange.

Colgate-Palmolive commands a leading position in oral care and personal care product categories. We believe that management's continued focus on product innovation, globally recognized brands and international presence in both developed and emerging markets enable the company to take advantage of growth opportunities and thereby augment profitability.

Earnings Whispers?

Our proven model does not conclusively project Colgate-Palmolive as beating earnings this quarter. A stock needs to have both a positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, 2 or 3 to surpass earnings estimates. However, that is not the case here due to the following factors:
 
Zacks ESP: ESP for Colgate-Palmolive is 0.00% since the Most Accurate estimate stands at 70 cents, which is in line with the Zacks Consensus Estimate.

Zacks Rank #3 (Hold): Colgate-Palmolive’s Zacks Rank #3 increases the forecasting power of ESP. However, we also need to have a positive ESP to be confident of an earnings surprise call. We caution against stocks with Zacks Rank #4 and 5 (Sell rated stocks) going into earnings announcement, especially when the company is undergoing negative estimate revisions.  

Other Stocks to Consider

Colgate-Palmolive is not the only firm we are looking up to this earnings season. Our model shows that the following stocks have the right combination of elements to post an earnings beat this quarter:

The Gap, Inc. (GPS - Analyst Report) has an Earnings ESP of +1.70% and a Zacks Rank #2 (Buy).

Five Below, Inc. (FIVE) has an Earnings ESP of +11.11% and a Zacks Rank #2 (Buy).

Deckers Outdoor Corp. (DECK - Analyst Report) has an Earnings ESP of +6.60% and a Zacks Rank #3 (Hold).
 

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