Colgate-Palmolive (CL) Stock Moves -0.57%: What You Should Know
Colgate-Palmolive (CL) closed the most recent trading day at $76.19, moving -0.57% from the previous trading session. This change was narrower than the S&P 500's 3.88% loss on the day. Meanwhile, the Dow lost 2.79%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Coming into today, shares of the consumer products maker had lost 2.26% in the past month. In that same time, the Consumer Staples sector lost 2.66%, while the S&P 500 lost 2.32%.
Colgate-Palmolive will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.71, down 11.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.39 billion, up 2.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.05 per share and revenue of $18 billion. These totals would mark changes of -4.98% and +3.33%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Colgate-Palmolive. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Colgate-Palmolive is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Colgate-Palmolive is currently trading at a Forward P/E ratio of 25.1. This represents a premium compared to its industry's average Forward P/E of 24.28.
It is also worth noting that CL currently has a PEG ratio of 5.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Soap and Cleaning Materials industry currently had an average PEG ratio of 4.01 as of yesterday's close.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 223, which puts it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CL in the coming trading sessions, be sure to utilize Zacks.com.
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