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.

We have maintained our long-term Neutral recommendation on the global consumer products company, Colgate-Palmolive Company (CL - Analyst Report) with a target price of $127.00, following its first-quarter 2013 results. Moreover, shares of Colgate-Palmolive carry a Zacks Rank #3 (Hold).

Why the Reiteration?

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

This is evident from the company’s recent concluded quarter. The company posted first-quarter 2013 adjusted earnings of $1.32 per share, up 6% year over year and in line with the Zacks Consensus Estimate.

The company’s adjusted gross profit margin expanded 40 basis points (bps) to 58.6%, driven by increased prices and cost savings from the company’s funding-the-growth initiatives. Moreover, adjusted operating profit climbed 4% to $985 million, while operating margin expanded 20 bps to 22.8%.

Looking ahead, Colgate-Palmolive anticipates the growth momentum to continue as it remains on track with its global restructuring program, funding-the-growth initiatives and strategic worldwide pricing schemes. In 2013, the company expects strong organic sales and gross margin expansion, coupled with 5.5% to 6.5% growth in earnings per share.

However, lingering macroeconomic concerns in Venezuela will remain a drag on its financials in the coming quarters. In addition, intense competition and sluggish economic recovery may undermine the company’s growth prospects.

Other Stocks to Consider

Until any further upward revision in Colgate-Palmolive's Zacks Rank, other stocks in the consumer staples industry that are worth considering include Nu Skin Enterprises Inc. (NUS - Snapshot Report), ZEP Inc. (ZEP - Snapshot Report)  and Avon Products Inc. (AVP - Analyst Report). Of these, Nu Skin holds a Zacks Rank #1 (Strong Buy) while ZEP and Avon carry a Zacks Rank #2 (Buy).

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
ANI PHARMACE ANIP 29.23 +14.40%
ALLIANCE FIB AFOP 17.91 +3.41%
ZIOPHARM ONC ZIOP 3.47 +2.97%
ATLAS FINANC AFH 14.66 +2.95%
FEDERATED NA FNHC 20.37 +2.52%