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Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Colgate-Palmolive as such a stock due to the following factors:
- CL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $155.9 million.
- CL has traded 452,675 shares today.
- CL traded in a range 561.3% of the normal price range with a price range of $3.48.
- CL traded above its daily resistance level (quality: 2 days, meaning that the stock is crossing a resistance level set by the last 2 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on CL:
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. The company operates in two segments: Oral, Personal and Home Care; and Pet Nutrition. The stock currently has a dividend yield of 2.2%. CL has a PE ratio of 28.6. Currently there are 6 analysts that rate Colgate-Palmolive a buy, 1 analyst rates it a sell, and 12 rate it a hold.
The average volume for Colgate-Palmolive has been 2.6 million shares per day over the past 30 days. Colgate-Palmolive has a market cap of $60.7 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.36 and a short float of 0.9% with 3.52 days to cover. Shares are up 1.4% year-to-date as of the close of trading on Wednesday.
rates Colgate-Palmolive as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- CL's revenue growth has slightly outpaced the industry average of 1.6%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Household Products industry and the overall market, COLGATE-PALMOLIVE CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $820.00 million or 5.53% when compared to the same quarter last year. Despite an increase in cash flow, COLGATE-PALMOLIVE CO's average is still marginally south of the industry average growth rate of 6.02%.
- The gross profit margin for COLGATE-PALMOLIVE CO is rather high; currently it is at 61.09%. Regardless of CL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.97% trails the industry average.
- COLGATE-PALMOLIVE CO's earnings per share declined by 13.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, COLGATE-PALMOLIVE CO reported lower earnings of $2.39 versus $2.58 in the prior year. This year, the market expects an improvement in earnings ($2.98 versus $2.39).
- You can view the full Colgate-Palmolive Ratings Report.