World's leading consumer goods dealer,
) is likely to beat the expectations when it reports its fiscal
2012 fourth-quarter results on Jan 31.
Why a Likely Positive Surprise?
Our proven model shows that Colgate-Palmolive may beat the
earnings because it has the right combination of two key
components - Positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #2.
Colgate-Palmolive currently has an Earnings ESP of +1.43%. This
is because the Most Accurate Estimate stands at $1.42, while the
Zacks Consensus Estimate is pegged at $1.40.
Zacks #2 Rank (Buy):
Note that stocks with Zacks Rank #1, #2 and #3 have significantly
higher chances of beating the earnings. The sell rated stocks (#4
and #5) should never be considered going into an earnings
The combination of Colgate-Palmolive's Zacks Rank #2 (Buy) and
Earnings ESP of +1.43% make us confident regarding a positive
earnings beat by the company on Jan 31.
What is driving the Better-than-Expected Earnings?
We believe that the company's strategic acquisition and
divestment activities, along with sustained focus on product
innovation, provide it a platform to take advantage of growth
opportunities, and thereby augment profitability.
The company has met as well as surpassed the Zacks Consensus
Estimate in trailing four quarters with an average surprise of
Other Stocks to Consider
Colgate-Palmolive is not the only firm looking up this
earnings season. The following companies - Colgate's industry
peers - are also likely to beat the earnings in the
Proctor & Gamble Company
) with Earnings ESP of +2.08% and a Zacks Rank #2 (Buy).
) with Earnings ESP of +1.24% and a Zacks Rank #3 (Hold).
Inter Perfums Inc.
) has Earnings ESP of +13.33% and carries a Zacks Rank #3
COLGATE PALMOLI (CL): Free Stock Analysis
CLOROX CO (CLX): Free Stock Analysis Report
INTER PARFUMS (IPAR): Free Stock Analysis
PROCTER & GAMBL (PG): Free Stock Analysis
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