A company that sells toothpaste and dishwashing liquid may not look like a growth company on the outside. But highly ranked Colgate-Palmolive, in addition to being a steady Eddie in terms of stock growth, is among the top stocks to buy and watch. Colgate-Palmolive stock rose Wednesday afternoon.
When putting together a watchlist, look for stocks with an 80 or higher Relative Strength Rating. Colgate-Palmolive now meets that criteria, with an increase from 78 to an 81 RS Rating Wednesday. Market research shows that the best-performing stocks typically have an RS Rating north of 80 in the early stages of their moves.
The upgraded 81 Relative Strength Rating shows that Colgate-Palmolive stock tops 81% of stocks in IBD's database for performance this past year.
On April 26 New York City-based Colgate-Palmolive announced first quarter earnings results. Earnings rose 18% to 86 cents per share. The prior two quarters Colgate reported 16% and 13% EPS growth, respectively. Revenue rose 6% last quarter to $5.07 billion.
Risk Management In The Stock Market: How Much Money To Invest Now
Colgate-Palmolive CEO Noel Wallace said in the April 26 earnings release, "We are particularly pleased to
have delivered double-digit growth in operating profit, net income and earnings per share for the
third consecutive quarter while still investing for the long-term health of our business."
Colgate-Palmolive Other Ratings Shine
Colgate-Palmolive stock has an 87 Composite Rating, putting it in the top 13% of stocks overall. The IBD Composite Rating is a combination of five key technical and fundamental ratings. Additionally it has an 84 Earnings Per Share Rating and a best-possible A SMR Rating (sales + profit margin + return on equity).
Its B Accumulation/Distribution Rating on an A+ to E scale shows that institutional buyers like ETFs and mutual funds are fairly heavy buyers.
Colgate-Palmolive stock has risen steadily for the last 30 years. It dropped to a 67.62 intraday low in mid-October last year as the market bottomed. It traded around 92 Wednesday afternoon, up about 24% in six months. From a 2008-09 market low 29.49 in late March 2009 it's soared 211%.
Look For Fresh Buy Point
Colgate-Palmolive stock is now 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 line.
Colgate-Palmolive stock holds 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 Relative Strength Rating measures share price action with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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