3 Stocks Pushing The Consumer Goods Sector Lower

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The Consumer Goods sector as a whole closed the day down 0.2% versus the S&P 500, which was down 0.3%. Laggards within the Consumer Goods sector included BRASILAGRO - CIA Bras de Prop Agricolas ( LND), down 1.7%, Entertainment Gaming Asia ( EGT), down 5.7%, Global-Tech Advanced Innovations ( GAI), down 2.0%, DS Healthcare Group ( DSKX), down 7.8% and Koss ( KOSS), down 5.0%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

Colgate-Palmolive ( CL) is one of the companies that pushed the Consumer Goods sector lower today. Colgate-Palmolive was down $1.22 (1.9%) to $63.64 on average volume. Throughout the day, 3,733,096 shares of Colgate-Palmolive exchanged hands as compared to its average daily volume of 2,816,200 shares. The stock ranged in price between $63.63-$64.53 after having opened the day at $64.45 as compared to the previous trading day's close of $64.86.

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 has a market cap of $58.7 billion and is part of the consumer non-durables industry. Shares are down 0.5% year-to-date as of the close of trading on Friday. Currently there are 6 analysts who rate Colgate-Palmolive a buy, 1 analyst rates it a sell, and 12 rate it a hold.

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

Highlights from TheStreet Ratings analysis on CL go as follows:

  • CL's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for COLGATE-PALMOLIVE CO is rather high; currently it is at 61.24%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.29% is above that of the industry average.
  • Net operating cash flow has slightly increased to $569.00 million or 3.83% when compared to the same quarter last year. In addition, COLGATE-PALMOLIVE CO has also modestly surpassed the industry average cash flow growth rate of -0.53%.
  • COLGATE-PALMOLIVE CO has improved earnings per share by 11.7% 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 $2.39 versus $2.58 in the prior year. This year, the market expects an improvement in earnings ($2.96 versus $2.39).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Household Products industry average. The net income increased by 10.9% when compared to the same quarter one year prior, going from $561.00 million to $622.00 million.

You can view the full analysis from the report here: Colgate-Palmolive Ratings Report

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