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Trade-Ideas LLC identified

Colgate-Palmolive

(

CL

) as a post-market leader 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 $195.0 million.
  • CL is up 2.1% today from today's close.

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More details on CL:

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It operates in two segments: Oral, Personal and Home Care; and Pet Nutrition. The stock currently has a dividend yield of 2.3%. CL has a PE ratio of 27. Currently there are 2 analysts that rate Colgate-Palmolive a buy, no analysts rate it a sell, and 15 rate it a hold.

The average volume for Colgate-Palmolive has been 3.7 million shares per day over the past 30 days. Colgate-Palmolive has a market cap of $59.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.92 and a short float of 1.2% with 3.47 days to cover. Shares are down 4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Colgate-Palmolive as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Household Products industry average. The net income increased by 33.9% when compared to the same quarter one year prior, rising from $542.00 million to $726.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. 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.
  • COLGATE-PALMOLIVE CO has improved earnings per share by 35.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COLGATE-PALMOLIVE CO reported lower earnings of $2.36 versus $2.39 in the prior year. This year, the market expects an improvement in earnings ($2.81 versus $2.36).
  • Although CL's debt-to-equity ratio of 26.63 is very high, it is currently less than that of the industry average. Along with the unfavorable debt-to-equity ratio, CL maintains a poor quick ratio of 0.81, which illustrates the inability to avoid short-term cash problems.
  • Net operating cash flow has decreased to $885.00 million or 11.76% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, COLGATE-PALMOLIVE CO has marginally lower results.

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