Health and beauty products giant Colgate-Palmolive saw its earnings growth rate get a lot healthier over the past year. Its sales growth rate also ticked up over the past two quarters, another sign of a turnaround. On Monday, the Relative Strength Rating for Colgate-Palmolive stock shot up 15 points, from 68 to a bullish 83, putting it in an elite group of top-performing stocks.
Market research shows that the best stocks to buy and watch typically have an RS Rating of at least 80 as they begin their biggest climbs. Colgate-Palmolive stock just arrived at that party.
Colgate-Palmolive Stock Improves With Profit Rebound
Over the past year, New York City-based Colgate-Palmolive has been profitable every quarter. Its earnings fell during that time, but it steadily improved from a 10% dip to 72 cents per share in the June 2022-ended quarter to a 1% decline in its most recent quarter, to 73 cents.
Meanwhile, the maker of Ajax brand cleanser, Palmolive dish soap, Colgate toothpaste and a host of other products saw its revenue growth rate rise over the past three quarters from 1% to 5% to 8%, or $4.77 billion last quarter. The company says it has 40% toothpaste market share globally.
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Stock Gaps Up Friday On Unexpected Improvement
Colgate-Palmolive stock rose nearly 20% from a 67.84 low last October when the market was bottoming, to 80.78 Monday afternoon. The stock gapped up Friday on better than expected earnings, and continued rising Monday. See if it is able to form and break out from a proper base.
Colgate-Palmolive stock holds the No. 4 rank among its peers in the Cosmetics/Personal Care industry group. Inter Parfums and BellRing Brands are also among the group's highest-rated stocks.
The exclusive Relative Strength Rating from Investor's Business Daily measures share price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
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