Top-ranked home goods maker Church & Dwight recently completed a cup-with-handle base. The question now is: Will it break out from here? On Monday, the Relative Strength (RS) Rating for Church & Dwight stock climbed to 76, up from 67 last week. The 76 RS Rating puts its stock in the top quartile for price performance this past year.
Church & Dwight Stock No. 1 In Group
Ewing, N.J.-based Church & Dwight is known for its Arm & Hammer brand and OxiClean cleaning products, its Waterpik teeth cleaning device and a host of other home products. It's the No. 1 ranked company in the cleaning and other home products industry group.
Among its other ratings Church & Dwight company has a good 87 Earnings Per Share Rating, out of 99. Church & Dwight stock has an 85 Composite Rating, and it has a B- Accumulation/Distribution Rating, showing big funds are buying its shares. The number of funds that own Church & Dwight stock rose from 1,776 in the March-ended quarter to 1,827 in the June quarter, according to MarketSmith chart analysis.
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Church & Dwight stock broke out earlier, but has fallen back below the prior 98.33 entry from a cup with handle. If a stock you're tracking breaks past a buy point then falls 7% or more below the original entry price, it's considered a failed base. Church & Dwight stock hasn't fallen below that level but it also hasn't broken out after completing the pattern. This latest pattern is a later-stage base, and those can succeed, but it should be noted they involve more risk than earlier stage bases.
Earnings Growth Strongest In A Year
The home goods company posted 21% earnings growth in its most recent report, to 92 cents per share. Sales grew 10% to $1.45 billion. Its EPS growth was strongest in a year, and its sales growth matched the yearlong high set the prior quarter.
Church & Dwight stock holds the No. 1 rank among its peers in the Soap & Cleaning Preparation industry group, which itself ranks a decent 77 of the 197 industries IBD tracks. Ecolab, known for supplying hotels and restaurants with cleaning products, is No. 2 in the group. Oakland, Calif.-based rival Clorox holds the No. 3 spot.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
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