Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

The shares of Colgate-Palmolive Co. (CL - Analyst Report) reached a new 52-week high of $66.04 on Oct 30, 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 $65.22 yesterday, amassing a year-to-date return of roughly 25.5%. Average volume of shares traded over the last 3 months stands at approximately 2,994K.

The company currently trades at a forward P/E of 23.1x, a 15.6% premium to the peer group average of 19.99x. The last traded price is 1.1% above the Zacks Consensus average analyst price target of $64.5.

Investors are optimistic about this Zacks Rank #3 (Hold) stock as its earnings per share of 73 cents came in line with the Zacks Consensus Estimate and rose 6.0% year over year. Colgate reported net sales of $4398 million that rose 1.5% on a year-over-year basis, with organic sales increasing 6%, backed by the growing emerging markets.

In the third quarter, adjusted gross profit margin increased 40 basis points to 59.0%, reflecting cost cuts and price escalations, which offset the rising raw material costs and related expenses. However, adjusted operating margin remain almost flat year over year at 23.9%.

With respect to its net income, earnings per share and operating profit, Colgate has outperformed for over 24 consecutive quarters on a year-over-year basis.

Looking ahead, Colgate-Palmolive expects to maintain its ongoing growth momentum for fiscal 2013, on the back of its pricing strategies, funding-the-growth initiatives and the 2012 restructuring program. It continues to envision gross margin expansion and 4.5%–5.5% growth in earnings per share for fiscal 2013 and double-digit growth in fiscal 2014 earnings.

Colgate is also known for its shareholder friendly moves. The company has been regularly increasing its dividend every year since 2001, presently paying an annual cash dividend of $1.36. This currently yields a solid 2.1%, while the company has a payout ratio of 52%.

Apart from Colgate, other retail stocks such as Constellation Brands Inc. (STZ - Analyst Report), Gannett Co., Inc. (GCI - Analyst Report) and L Brands, Inc. achieved new 52-week highs of $65.79, $28.17 and $62.66, respectively, on Oct 30, 2013.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GENERAL FINA GFN 8.20 +5.67%
QIHOO 360 TE QIHU 91.57 +4.38%
VIPSHOP HOLD VIPS 140.01 +3.49%
INVESTMENT T ITG 19.16 +3.34%
VERTEX ENERG VTNR 7.38 +3.07%