The shares of
) reached a new 52-week high of $118.97 on Tuesday, Apr 2,
gaining momentum from the company's consistent performance as
well as an encouraging outlook. This global consumer products
company eventually closed at $118.90, recording a healthy
year-to-date return of 11.8%. Average volume of shares traded
over the last 3 months stands at approximately 1,735K.
Apart from Colgate, other stocks in the retail space that touched
all-time highs on the same trading day are
Constellation Brands Inc.
Avis Budget Group Inc.
Archer Daniels Midland Company
) reaching $49.22, $29.53 and $34.28, 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 20.8x, a slight premium from the peer
group average of 20.6x.
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.
On Jan 31, 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 over 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 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 #4 (Sell) 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 2001and presently is paying an annual cash dividend of
$2.48. This currently yields a solid 2.1%, while the company has
a payout ratio of 47%.
ARCHER DANIELS (ADM): Free Stock Analysis
AVIS BUDGET GRP (CAR): Free Stock Analysis
COLGATE PALMOLI (CL): Free Stock Analysis
CONSTELLATN BRD (STZ): Free Stock Analysis
To read this article on Zacks.com click here.