We recently compiled a list of the 10 Most Oversold Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Church & Dwight Co., Inc. (NYSE:CHD) stands against the other oversold stocks.
Due to the uncertainty surrounding the tariff news, Wall Street is seeing some effects. Investors are mostly concerned about tariffs because they believe they could hinder economic development and lead to inflation, which is why the broader market has fallen significantly since Trump took office on January 20. While Trump claims tariffs can increase national revenue, encourage broad-based growth, and be used as a negotiating tool with other countries, investors worry that trade policies can lower consumer confidence and limit businesses’ capacity to spend capital.
Tariffs, Growth Fears, and Fed Policy
Wells Fargo Wealth and Investment Management CIO Darrell Cronk appeared on CNBC’s “Squawk on the Street” on April 28 to talk about market outlooks and what investors should consider given the current state of the market. He believed that rather than inflation, investors should be concerned about growth. According to Cronk, it is crucial to exercise caution when pursuing stocks too aggressively because the market is expected to present greater buying and entry opportunities in the upcoming weeks. Since the terms of the game can change incredibly quickly in our geopolitical-first environment, there is a widening gap between sentiment and positioning.
Cronk went on to say that many people only consider the inflationary aspect of tariffs, ignoring another important element. Tariffs cause inflation, but only when they impose price resets; they do not cause persistent inflation. Therefore, even while businesses must be prepared to withstand the impact of margins and the blunt force reset of prices, it’s not like the rate of change of inflation keeps getting noticeably larger from year one to years two, three, and four. Only when tariffs rise noticeably over time does this trend become apparent.
Cronk also discussed the president’s insistence that the Fed lower interest rates. Not only the president, but the bond market is following suit. The Fed must make decreases gradually. However, Cronk asserts that markets would not react well if the Fed appeared tomorrow and declared some kind of emergency cut. The growth worry would become more widespread and troublesome since the markets would interpret it as the Fed knowing something they don’t. For this reason, the Fed must exercise caution in its actions.
The Fed has consistently stated that it is more worried about inflation. The markets would view them as more dovish if they began to focus more on growth issues rather than inflation. He claimed that the president of the Fed recently stated that a rate cut in June would be conceivable. As a result, the Fed is beginning to set the foundation; we will have to wait and watch how that story develops. If it adopts a more dovish stance, markets would thoughtfully and strategically interpret that.
Nine out of the eleven S&P gig sectors have lowered their guidance since April 1. The issue is that less than 20% of the 20% to 25% of reported results that the market has currently seen have been willing to provide guidance. Cronk thus emphasized how crucial and harmful the guidance suspension is in this case. Therefore, the market needs tech to deliver and consumer discretionary stocks and industrials to hold up.
Our Methodology
For our methodology, we first used a stock analysis screener to identify stocks with a market capitalization above $10 billion and a Relative Strength Index (RSI) below 40. From the filtered results, we selected the top 10 stocks and ranked them based on the number of billionaire investors holding positions, aligning with the focus of our analysis. In cases where multiple stocks had the same number of billionaire holders, we used the total dollar value of billionaire holdings as a tiebreaker, giving a higher rank to the stock with the greater investment value.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A supermarket aisle filled with Household and Personal Care Products.
Church & Dwight Co., Inc. (NYSE:CHD)
Number of Billionaire Holdings: 10
Dollar Value of Billionaire Holdings: $406,794,990
Church & Dwight Co., Inc. (NYSE:CHD) is a major U.S. consumer goods company known for producing household and personal care brands like Arm & Hammer, OxiClean, Spinbrush, Trojan, and Vitafusion. It generates revenue by manufacturing and selling these branded products through supermarkets, drugstores, wholesale clubs, and online platforms, reaching consumers globally through both physical and digital retail channels.
In Q1 2025, Church & Dwight Co., Inc. (NYSE:CHD) reported a 2.4% year-over-year revenue decline, with organic sales down 1.2% due to a 1.4% volume drop. The decline was largely driven by retailer destocking amid softer U.S. consumer demand. Despite this, the company gained market share in 9 of its 14 major brands, and over 80% of its portfolio saw volume share growth. Notably, online sales continued to rise, now making up nearly 23% of global sales.
The corporation’s profitability remained under pressure, with adjusted EPS down 5.2% to $0.91, though slightly above guidance. Gross margin fell to 45.1% as gains from productivity and product mix were outweighed by inflation and manufacturing costs. Its marketing spend declined to 9.3% of sales, with a full-year goal of 11% to support brand momentum.
Church & Dwight Co., Inc. (NYSE:CHD), considered one of the most oversold stocks, reported operating cash flow of $185.7 million, which is down due to lower cash earnings and working capital timing. The company maintained a healthy balance sheet, allocating $16.5 million in Q1 CapEx with plans to invest around $130 million for the year.
Strategically, the business is exiting low-margin businesses like Flawless, Spinbrush, and Waterpik showerheads—about 2% of total sales—to focus on stronger brands and reduce tariff exposure by roughly 80%. These moves align with its long-term focus on profitability and efficiency.
Investors are optimistic due to the company’s strong brand portfolio, defensive business model, and expanding digital presence. Recent innovations like BATISTE Light dry shampoo and new THERABREATH flavors, along with proactive cost controls and strategic pruning, are expected to drive renewed growth and margin recovery.
Overall CHD ranks 7th among the most oversold stocks to buy according to billionaires. While we acknowledge the potential of CHD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CHD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
