- Colgate-Palmolive (CL), a home products giant with approximately $20 billion in annual sales, has been performing like a growth stock, with its stock price rising 38% in seven months.
- The company’s stock Relative Strength (RS) Rating climbed to 81 Wednesday, indicating that it outperformed 81% of all stocks in IBD’s database over the past year.
- Colgate-Palmolive’s stock rise is attributed to robust consumer spending, despite still-elevated inflation.
Colgate-Palmolive, a household name in home products, is experiencing a surge in its stock price, outperforming 81% of all stocks in the past year.
Colgate-Palmolive Stock Lifted By Consumer Spending
New York-based Colgate Palmolive, which has been in operation since 1806, offers a wide range of products including Ajax cleanser, Irish Spring brand hand soap, baby care products, pet food, deodorants, toothpaste, and more. Its stock is on the rise as consumer spending remains strong despite ongoing inflation. The stock currently trades well above its 21-day, 50-day, and 200-day lines following its impressive seven-month run.
Extended and Out of Buy Range
Colgate-Palmolive stock is considered extended and out of buy range after clearing an 85.01 buy point in a first-stage cup without handle. Investors are now watching to see if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Among Top 12% Of Stocks Overall
Colgate-Palmolive stock has an 88 Composite Rating, placing it in the top 12% of all stocks. It also has an 84 Earnings Per Share Rating and a best-possible A SMR Rating (sales + profit margins + return on equity), reflecting its strong fundamentals. Its A- Accumulation/Distribution Rating indicates that institutional investors like mutual funds and university funds are strong buyers.
Conclusion
Colgate-Palmolive’s stock performance is a testament to its strong fundamentals and the robust consumer spending in the market. Despite inflation, the company continues to thrive and outperform a majority of stocks. Investors are now keenly watching for new patterns and buying opportunities.
