The Procter & Gamble Company (PG): Investing in the Coupon Nation

Remember, when you see earnings lag revenue, it might mean the company may be trying too hard to raise revenue at the expense of good cost control. Colgate-Palmolive Company (NYSE:CL) shows that steady earnings follow steady revenue. In 2010, the EPS for Colgate-Palmolive was $2.24. That jumped to $2.50 in 2012 and ended up at $2.60 a year later. That’s very close to the company’s revenue growth.

Analysts are bullish on Colgate-Palmolive Company (NYSE:CL)’s ability to grow its earnings as the world economy shakes off its sluggish pattern. At the end of 2013, analysts see an EPS of $2.86 and $3.15 in 2014. That’s a growth rate of 6.53% and 10.16%, respectively.

Don’t discount the coupon nation

By examining revenue and earnings, we can see that the kings of the coupon nation seem to have their marketing machinery in sync with their money makers. If consumers continue to be money-conscious in the next months or years, we should see these companies turn economic uncertainty into economic opportunity.

Matt Swayne owns shares of Procter & Gamble. The Motley Fool recommends Procter & Gamble.

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