The shares of
) have been continually soaring up the charts since the start of
2013, crafting a new 52-week high of $119.24 on Friday, Apr 12.
The stock gained momentum from the company's consistent
performance as well as an encouraging outlook. This global
consumer products company eventually closed at $118.37, recording
a healthy year-to-date return of 11.3%. Average volume of shares
traded over the last 3 months stands at approximately 1,720K.
Apart from Colgate, other stocks in the retail space that touched
all-time highs on the same trading day are
The Home Depot Inc.
Leggett & Platt Inc.
), reaching $73.66, $38.23 and $34.07, respectively.
An impressive earnings performance, favorable fiscal 2013
outlook, expanding profit margins, healthy financial position and
a decent dividend yield are the key strengths of the stock that
enabled it to attain a new high. Moreover, the stock currently
trades at a forward P/E of 20.7x, a slight premium from the peer
group average of 20.5x.
With respect to earnings surprises, Colgate has either met or
surpassed the Zacks Consensus Estimate over the last several
quarters, most recently topping it by 0.71% in the fourth quarter
of fiscal 2012.
Colgate posted impressive quarterly results with healthy 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
Global sales of $4,286 million increased 2.7% from the prior-year
quarter level of $4,172 million, primarily benefiting from a 2.5%
upside in pricing and a 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 this
Zacks Rank #3 (Hold) stock's 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 and is 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
GAP INC (GPS): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
LEGGETT & PLATT (LEG): Free Stock Analysis
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