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Bear Of The Day: Colgate-Palmolive (CL)

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Colgate-Palmolive (CL - Free Report) is a Zacks Rank #5 (Strong Sell) and is the Bear of the Day.  Let's take a look at why this stock has the lowest of all the Zacks Ranks and if there are any silver linings to this playbook.


Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate sells its products in over 200 countries and territories around the world under such internationally recognized brand names as Colgate, Palmolive, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom's of Maine, Sanex, Ajax, Axion, Soupline, and Suavitel, as well as Hill's Science Diet, Hill's Prescription Diet and Hill's Ideal Balance. As a leading consumer products company, they are also deeply committed to advancing technology that can address changing consumer needs throughout the world. In fact, their goal is to use technology to create products that will continue to improve the quality of life for consumers where they live.

Earnings History

When I think of a Bear of the Day, I normally see a stock that has missed a few times in the last year.  That is not the case for CL, as the company has met or beat the Zacks Consensus Estimate in each of the last four quarters.

Estimate Revisions

A quick glance at the estimate revisions tells me immediately why this is a Zacks Rank #5 (Strong Sell).  I see the current quarter estimate has moved from $0.72 to $0.66.  That is not what we want to see.  The next quarter has also seen a move lower by another nickel.

The full year 2019 number has slid from $3.03 to $2.83 over the last 60 days.  The 2020 number has also moved lower by 17 cents over the same time horizon to $3.01.

The big move lower in earnings estimates is the primary reason for the lower Zacks Rank.


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