Staid home products giant Colgate-Palmolive, with roughly $20 billion annual sales, is acting more like a young growth stock. In mid-October its stock was at 67.62. Wednesday afternoon it was trading around 93, up 38% in seven months. It's no surprise the Colgate-Palmolive stock Relative Strength (RS) Rating climbed to 81 Wednesday, up from 78.
The upgraded 81 RS Rating indicates that Colgate-Palmolive stock outperformed 81% of all stocks in IBD's database over the past year. Further, market research shows that the top-performing stocks often have an RS Rating of over 80 as they launch their biggest runs.
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Colgate-Palmolive Stock Lifted By Consumer Spending
New York-based Colgate Palmolive, which traces its roots back to 1806, sells a variety of products including Ajax cleanser and Irish Spring brand hand soap, along with baby care, pet food, deodorants, toothpaste and a host of other products. Its stock is rising as consumer spending remains robust despite still-elevated inflation.
Colgate-Palmolive stock trades well above its 21-day, 50-day and 200-day lines after the strong seven-month run.
Additionally, Colgate-Palmolive stock is considered extended and out of buy range after clearing an 85.01 buy point in a first-stage cup without handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Earnings growth moved up in the company's latest report to 18%, or 86 cents per share. It was the best showing in a year. The prior three quarters its EPS growth rose from 7% to 16% then 13%. Revenue grew 6% last quarter to $5.07 billion. Although not bad for a big-cap company, it was its weakest showing in a year. The prior three stanzas sales grew 8%, 10% and 7%.
Among Top 12% Of Stocks Overall
Among its other ratings, Colgate-Palmolive stock has an 88 Composite Rating, meaning it tops 88% of all stocks overall. It has an 84 Earnings Per Share Rating and a best-possible A SMR Rating (sales + profit margins + return on equity), mirroring its strong fundamentals. Finally, its A- Accumulation/Distribution Rating shows that institutional investors like mutual funds and university funds are strong buyers.
Colgate-Palmolive stock earns the No. 3 rank among its peers in the 40-stock Cosmetics/Personal Care industry group. FitLife Brands is the No. 1-ranked stock in the group.
IBD's unique RS Rating tracks market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies.
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