) is set to declare second-quarter 2013 results on Jul 25. In the
last quarter, the company's adjusted earnings were up 6% year
over year and in line with the Zacks Consensus Estimate. Let us
now look at how things have developed for the imminent
Growth Factors in the Past Quarter
The year-over-year improved top-line results for first-quarter
2013 primarily benefited from a rise in global unit volumes and
pricing, partially offset by a negative impact from foreign
Colgate-Palmolive commands a leading position in oral care and
personal care product categories. We believe that management's
continued focus on product innovation, globally recognized brands
and international presence in both developed and emerging markets
enable the company to take advantage of growth opportunities and
thereby augment profitability.
Our proven model does not conclusively project Colgate-Palmolive
as beating earnings this quarter. A stock needs to have both a
positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following factors:
ESP for Colgate-Palmolive is 0.00% since the Most Accurate
estimate stands at 70 cents, which is in line with the Zacks
Colgate-Palmolive's Zacks Rank #3 increases the forecasting power
of ESP. However, we also need to have a positive ESP to be
confident of an earnings surprise call. We caution against stocks
with Zacks Rank #4 and 5 (Sell rated stocks) going into earnings
announcement, especially when the company is undergoing negative
Other Stocks to Consider
Colgate-Palmolive is not the only firm we are looking up to this
earnings season. Our model shows that the following stocks have
the right combination of elements to post an earnings beat this
The Gap, Inc.
) has an Earnings ESP of +1.70% and a Zacks Rank #2 (Buy).
Five Below, Inc.
) has an Earnings ESP of +11.11% and a Zacks Rank #2 (Buy).
Deckers Outdoor Corp.
) has an Earnings ESP of +6.60% and a Zacks Rank #3 (Hold).
COLGATE PALMOLI (CL): Free Stock Analysis
DECKERS OUTDOOR (DECK): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
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