Colgate-Palmolive Company (CL): Today's Featured Consumer Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Colgate-Palmolive Company ( CL) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Colgate-Palmolive Company fell $1.76 (-1.6%) to $112.08 on heavy volume. Throughout the day, 4.1 million shares of Colgate-Palmolive Company exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in price between $112.08-$113.11 after having opened the day at $112.50 as compared to the previous trading day's close of $113.84. Other companies within the Consumer Goods sector that declined today were: DS Healthcare Group ( DSKX), down 15.3%, Standard Register Company ( SR), down 14.8%, Virco Manufacturing Corporation ( VIRC), down 13.7%, and Central European Distribution ( CEDC), down 13.7%.
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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. Colgate-Palmolive Company has a market cap of $53.74 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 22.3, above the S&P 500 P/E ratio of 17.7. Shares are up 8.9% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Colgate-Palmolive Company a buy, two analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Colgate-Palmolive Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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