Could Colgate-Palmolive’s 4Q16 Results Boost Its Stock?



Price movement

Colgate-Palmolive (CL) is slated to report its 4Q16 results on January 27. YTD (year-to-date), the stock price of the $59.6 billion consumer products company had risen 2.5% on January 17, 2017. The stock’s weekly and monthly price movements were 1.0% and 1.8%, respectively. Colgate-Palmolive is trading 1.6% above its 20-day moving average, 0.70% above its 50-day moving average, and 4.9% below its 200-day moving average. The company’s stock price fell -1.8% in 2016.

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Comparison with peers

Colgate-Palmolive has outperformed Procter & Gamble (PG), The Clorox Company (CLX), Kimberly-Clark (KMB), and the S&P 500 on a YTD basis. YTD, Procter & Gamble’s, Clorox’s, and Kimberly-Clark’s stock had returned 1.3%, 1.1%, and 1.7%, respectively, as of January 17.

As of January 17, the S&P 500 and the Consumer Staples Select Sector SPDR ETF (XLP) had grown 1.3% and 1.0%, respectively. Colgate-Palmolive constitutes 3.3% of XLP.

Recent performance

In 3Q16, Colgate-Palmolive exceeded analysts’ earnings estimate but missed their sales estimate. Foreign exchange fluctuations and the deconsolidation of the company’s Venezuelan business adversely impacted its top line in 3Q16.

Series overview

With Colgate-Palmolive’s 4Q16 results around the corner, we’ll discuss analysts’ expectations for its 4Q16 sales, segments, and earnings. This series will also discuss the company’s strategies and analysts’ recommendations for Colgate-Palmolive’s stock. In the next part of this series, we’ll start with a discussion on sales expectations for the company.


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