The shares of
) reached a new 52-week high of $117.36 on Tuesday, Mar 26,
gaining momentum from the company's consistent performance as
well as an encouraging outlook. This Zacks Rank #3 (Hold) global
consumer products company eventually closed at $117.32, recording
a healthy return of 24.1% over the past year. Average volume of
shares traded over the last 3 months stands at approximately
Besides Colgate, other stocks in the retail space that touched
all-time highs in the recent weeks are
Constellation Brands Inc.
The Clorox Company
Campbell Soup Company
An impressive record of either meeting or beating the quarterly
earnings expectations, a positive fiscal 2013 outlook and a
decent dividend yield are the factors that enabled the shares of
Colgate to reach a new high. Moreover, the stock currently trades
at a forward P/E of 20.4x, at a slight premium from the peer
group average of 20.2x.
With respect to earnings surprises, Colgate has either met or
surpassed the Zacks Consensus Estimate for the last several
quarters, most recently topping it by 0.71% in the fourth quarter
of fiscal 2012.
On Jan 31, Colgate posted impressive quarterly results with
strong earnings and sales comparisons for the fourth quarter of
fiscal 2012. The company posted adjusted earnings of $1.41 per
share that came a penny ahead of the Zacks Consensus Estimate and
jumped 8.5% year over year.
Global sales of $4,286 million inched up nearly 2.7% from the
prior-year quarter level of $4,172 million, primarily benefiting
from a 2.5% upside in pricing and 1.5% increase in global unit
volumes (excluding divested businesses), partially offset by a
negative impact of 1.5% from foreign exchange.
The company's adjusted gross profit margin expanded 90 basis
points (bps) to 58.6%, driven by increased prices as well as cost
savings from the company's funding-the-growth initiatives.
Looking ahead, Colgate-Palmolive anticipates its growth momentum
to continue in fiscal 2013 with gross margin expansion and
double-digit growth in earnings per share. However, lingering
macroeconomic concerns in Venezuela will remain a drag on its
financials in the coming quarters.
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 $2.48.
This currently yields a solid 2.1%, while the company has a
payout ratio of 47%.
COLGATE PALMOLI (CL): Free Stock Analysis
CLOROX CO (CLX): Free Stock Analysis Report
CAMPBELL SOUP (CPB): Free Stock Analysis
CONSTELLATN BRD (STZ): Free Stock Analysis
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