Colgate-Palmolive Co
CL: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$35.00 | Nhld | Jdhcdbvr |
Colgate Earnings: Sales Swell on the Heels of Prudent Investments, but Shares Not Attractive
The narrative around the weakening consumer spending backdrop is questionable, if wide-moat Colgate’s second-quarter results are any indication. Organic sales shot up 9% (on top of 8.2% growth last year), reflecting a near-balanced contribution from increased volumes (4.7%) and higher prices (4.2%). These runs counter to others in the industry, which have been more challenged to buoy volumes after several quarters of outsize price hikes.