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Colgate-Palmolive (CL) Stock Sinks As Market Gains: What You Should Know

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Colgate-Palmolive (CL) closed at $78.78 in the latest trading session, marking a -0.19% move from the prior day. This change lagged the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the consumer products maker had gained 2.72% in the past month. In that same time, the Consumer Staples sector lost 0.14%, while the S&P 500 lost 1.38%.

Wall Street will be looking for positivity from Colgate-Palmolive as it approaches its next earnings report date. In that report, analysts expect Colgate-Palmolive to post earnings of $0.73 per share. This would mark a year-over-year decline of 8.75%. Meanwhile, our latest consensus estimate is calling for revenue of $4.39 billion, up 2.95% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.08 per share and revenue of $18 billion, which would represent changes of -4.05% and +3.33%, respectively, from the prior year.

Any recent changes to analyst estimates for Colgate-Palmolive should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Colgate-Palmolive has a Forward P/E ratio of 25.61 right now. Its industry sports an average Forward P/E of 24.96, so we one might conclude that Colgate-Palmolive is trading at a premium comparatively.

Also, we should mention that CL has a PEG ratio of 5.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CL's industry had an average PEG ratio of 4.13 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 226, which puts it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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