Colgate-Palmolive Company (CL), The Clorox Co (CLX): A Bright Outlook Based on These 4 Measures

Page 1 of 2

When companies are about to report earnings, investors would do well to look at the prior earnings report to try and find trends that may continue over the next few quarters. With Colgate-Palmolive Company (NYSE:CL)’s earnings report right around the corner, there are four trends that shareholders should hope will continue.

Colgate-Palmolive Company (NYSE:CL)

Growth and Income on a Global Scale
There are two things that define Colgate-Palmolive Company (NYSE:CL)’s current market position. First, the company competes against some of the most well-known companies in the world. Colgate competes against titans such as The Procter & Gamble Company (NYSE:PG), The Clorox Co (NYSE:CLX), and Kimberly Clark Corp (NYSE:KMB). Each of these companies generates billions in sales all over the world, and has some of the most well-known brands in history.

In addition, each of these companies offers investors similar yields and earnings growth rates. One reason investors might choose to overlook Colgate-Palmolive Company (NYSE:CL) is their relatively lower yield at about 2.3%. Since investors can get a 3% yield from The Procter & Gamble Company (NYSE:PG), and about 3.3% from both The Clorox Co (NYSE:CLX) and Kimberly Clark Corp (NYSE:KMB), Colgate’s yield might not look competitive.

That being said, Colgate-Palmolive Company (NYSE:CL) leads their peers when it comes to expected earnings growth. In the next few years, analysts expect earnings growth of over 9%, whereas all of its peers is expected to grow earnings by less than 8%. Relatively speaking, Colgate-Palmolive Company (NYSE:CL)’s faster expected earnings growth helps to offset the company’s slightly lower yield.

Sales Growth and Signs of Stability
When comparing multi-billion dollar companies, one of the best ways to determine which one has the strongest sales momentum is by looking for strong volume growth. While it’s hard to compare Colgate-Palmolive Company (NYSE:CL) to its peers because they each report sales differently, it’s fairly clear that the company has volume growth on its side.

In the company’s last earnings report, Colgate-Palmolive said that unit volume was up 3.5% in North America, 5.5% in Latin America, and 11% in the Greater Asia/Africa region. The only region to show flat volume growth was Europe, which isn’t surprising considering the weakness in the region. By comparison, The Procter & Gamble Company (NYSE:PG) reported volume growth in three of its five divisions, and Kimberly Clark Corp (NYSE:KMB) reported volumes up 3% and 4% in its two largest divisions; The Clorox Co (NYSE:CLX) fell behind with mostly 1% volume increases. This leads us to the first thing investors should look for in Colgate-Palmolive’s upcoming earnings report: continued strength in organic volume growth across the company’s geographic divisions.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!