Core Viewpoint - The Zacks Style Scores, which include Value, Growth, and Momentum Scores, are designed to help investors identify stocks with the best potential to outperform the market over the next 30 days [1][4]. Group 1: Zacks Style Scores Overview - The Momentum Style Score focuses on capitalizing on price trends and earnings outlook changes, utilizing metrics like one-week price change and monthly earnings estimate percentage change [4]. - Each stock is rated from A to F based on its value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [11]. - The Value Style Score identifies attractive stocks using financial ratios such as P/E and Price/Sales, while the Growth Style Score assesses future prospects through earnings and sales growth [12][13]. Group 2: Zacks Rank and Performance - The Zacks Rank, which leverages earnings estimate revisions, has shown that 1 (Strong Buy) stocks have produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5]. - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for better investment outcomes [21]. - A stock with a lower Zacks Rank, even with high Style Scores, may still face downward price pressure due to a negative earnings outlook [17]. Group 3: Company Spotlight - Church & Dwight Co., Inc. (CHD) - Church & Dwight is a leading U.S. producer of sodium bicarbonate and offers a range of household and personal care products [7]. - The company has seen two analysts revise their earnings estimates higher for fiscal 2024, with the Zacks Consensus Estimate now at $3.46 per share, reflecting a 9.6% average earnings surprise [8]. - CHD holds a Zacks Rank of 3 (Hold) and has a Growth Style Score of A, forecasting a year-over-year earnings growth of 9.2% for the current fiscal year [18][23].

For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Church & Dwight (CHD) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question. Church & Dwight is one of 185 companies in the Consumer Staples ...

Industry Overview - The Zacks Soap and Cleaning Materials industry consists of companies manufacturing fast-moving consumer goods, including personal care, household, and specialty products [3] - Key segments include personal care (skin and hair care, deodorants, oral care) and household products (laundry care, cleaning agents, air care) [3] Current Challenges - Companies face challenges from higher manufacturing and logistics costs, increased commodity prices, and reduced volumes [1] - Elevated spending on advertising and sales promotions is expected to impact near-term margins [1] - Escalating raw material and logistic costs, particularly transportation, are hurting margins [6] Strategic Responses - Companies are implementing cost-cutting measures to support margins while enhancing product offerings and marketing efforts [1] - Emphasis on operational transformation, digital commerce growth, and innovation has been key to success despite macroeconomic challenges [2] - Investments in product development and eco-friendly ingredients are becoming increasingly important [4] Demand and Pricing Trends - Strong demand trends for consumer products and brands are boosting industry performance [2] - Companies have benefited from strategic pricing actions, improving sales trends [2][5] - Bold pricing initiatives are being adopted to combat rising costs due to inflation and supply chain issues [5] Industry Performance - The Zacks Soap and Cleaning Materials industry has outperformed the broader Zacks Consumer Staples sector, rising 12.7% in the past year, while the sector declined by 5.3% [10] - The industry currently holds a Zacks Industry Rank of 28, placing it in the top 11% of over 250 Zacks industries, indicating bright near-term prospects [8][9] Valuation Metrics - The industry is trading at a forward 12-month price-to-earnings (P/E) ratio of 22.75X, compared to the S&P 500's 21.91X and the sector's 17.01X [12] - Over the past five years, the industry's P/E ratio has ranged from 20.08X to 25.13X, with a median of 22.47X [12] Company Highlights - **Colgate-Palmolive**: Focused on innovation and expanding into new markets, with a Zacks Consensus Estimate indicating 3.9% sales growth and 9.3% earnings growth for 2024 [15] - **Henkel AG**: Benefits from a purposeful growth agenda and expects 12.8% earnings growth for 2024 [19] - **Church & Dwight**: Gaining from innovation and pricing strategies, with a 4.6% sales growth estimate for 2024 [22] - **Procter & Gamble**: Strong performance across all segments, with a 2.8% sales growth estimate for 2024 [25] - **Clorox**: Focused on operational efficiency and digital investments, with a 16.1% earnings growth estimate for 2024 [28]

Core Insights - Church & Dwight Co., Inc. (CHD) is leveraging strong consumer demand and effective pricing strategies to enhance its brand presence and productivity [1][2] - The company has seen a 5.2% increase in quarterly organic sales, attributed to a favorable product mix and a 1.5% increase in pricing [2] - Despite rising costs impacting gross margins, the company remains focused on innovation and strategic acquisitions to drive growth [10][8] Financial Performance - In the first quarter of 2024, Church & Dwight's gross margin was affected by inflation, although pricing and productivity gains helped mitigate some of the impact [10] - Marketing expenses rose by $29.7 million to $152 million in the first quarter of 2024, with adjusted SG&A expenses increasing by 80 basis points to 14.8% of net sales [17] Strategic Initiatives - The company signed an agreement to acquire Graphico, a Japanese distributor, for $35 million, aiming to enhance its presence in Japan and the APAC region [8] - Church & Dwight introduced two new products in the detergent category, ARM & HAMMER Deep Clean and ARM & HAMMER Power Sheets, which have shown promising early results in 2024 [9] Brand Portfolio - Church & Dwight has a robust portfolio with seven power brands, including ARM & HAMMER and OXICLEAN, which contribute nearly 70% of its revenues and profits [16] - The company has a history of acquisitions that have bolstered its top-line growth, starting with its initial brand, ARM & HAMMER [15] Market Position - Church & Dwight's shares have increased by 11.7% over the past six months, slightly trailing the industry's growth of 12.6% [18]

Pricing Actions Drive Growth Although compensated by pricing, volumes and productivity gains, Church & Dwight's gross margin was partly hurt by inflation in first-quarter 2024. In its last earnings call, management highlighted that it expects to witness a rise in manufacturing costs, mainly due to capacity-related investments, a rise in third-party manufacturing expenses and moderate commodity inflation. In 2022, Church & Dwight acquired the Hero Mighty Patch brand (or Hero) and other acne treatment product ...

The stock market offers a platform for investors to buy shares in companies. Potentially earning profits through dividends. Dividend stocks pay regular income to shareholders, usually from the company's profits. These stocks attract investors looking for steady cash flow in addition to capital appreciation. One major advantage of investing in dividend stocks is the potential for regular income, which can be especially appealing during volatile or uncertain market conditions. Many dividend-paying companies a ...

Financial Data and Key Metrics Changes - Adjusted EPS for Q1 2024 was $0.96, up 12.9% from the prior year, exceeding the outlook of $0.85 due to higher-than-expected sales growth, gross margin expansion, and a lower tax rate [135][158] - Reported revenue increased by 5.1%, with organic sales growth of 5.2%, driven by a volume increase of 3.7% and a positive product mix and pricing of 1.5% [145][165] - Gross margin expanded by 220 basis points to 45.7%, primarily due to productivity, volume, mix, and pricing, net of higher manufacturing costs [165][158] Business Line Data and Key Metrics Changes - In the laundry segment, ARM & HAMMER Liquid Laundry Detergent consumption was flat, while the category grew by 2% [5] - BATISTE in Personal Care saw a strong consumption growth of 19% in Q1, increasing its market share to 47.5% [7] - The Gummy Vitamins and WATERPIK segments negatively impacted total company organic growth, with WATERPIK experiencing a 1% drag due to retailer inventory adjustments [8][180] Market Data and Key Metrics Changes - The International business delivered organic growth of 8.8% in Q1, driven by strong performance in Mexico, Germany, the U.K., and France [9] - Specialty Products organic sales increased by 7.2%, primarily due to record sales in the Eurasia business [9] - ARM & HAMMER Litter grew consumption by 5% in Q1, aligning with category growth [178] Company Strategy and Development Direction - The company signed an agreement to acquire Graphico, a Japanese distributor, for approximately $35 million, expected to close later this year, enhancing its presence in Japan and the APAC region [4][176] - The company plans to leverage revenue growth management to support selective brand and retailer growth, which has shown positive results in the first quarter [88] - New product launches, including ARM & HAMMER Deep Clean and Power Sheets, are expected to drive organic growth, with an anticipated contribution of about 2% from new products for the year [30][134] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting that despite challenges in certain segments, overall performance remains strong with three consecutive quarters of U.S. volume growth [159][163] - The company raised its full-year outlook for gross margin and EPS growth due to a strong start in Q1 [164] - Management highlighted that while there are pressures on the consumer, the company has not seen a significant decline in consumption across its product categories [82] Other Important Information - Marketing expenses increased by $29.7 million year-over-year, accounting for 10.1% of net sales, which contributed to market share gains [183] - Capital expenditures for Q1 were $46.3 million, with expectations of approximately $180 million for the full year as capacity expansion projects continue [167] - The company expects cash flow from operations to be approximately $1,050 million for the full year, slightly up from the previous outlook of $1 billion [166] Q&A Session Summary Question: What is the outlook for laundry volumes? - Management noted an improvement in laundry volumes and expects this trend to continue as promotional activities normalize [18][39] Question: What is the impact of WATERPIK's performance on the outlook? - Management indicated that while WATERPIK faced shipment issues due to retailer inventory adjustments, consumption remains healthy, and they expect recovery in the latter part of the year [28][29] Question: How is the company managing marketing expenses? - Management stated that marketing spending is expected to increase in Q2 and Q3, with a strategic shift to support new product launches [35][36] Question: What are the dynamics in the litter market? - Management acknowledged increased competition and private label activity but emphasized that their market share remains strong [33][62] Question: How is the company addressing consumer pressures? - Management highlighted that while there are pressures such as rising credit card debt, consumption for their products has remained stable, indicating resilience in their portfolio [82][61]

Certain subsidiaries that are included in the Consumer International segment manufacture and sell personal care products to the Consumer Domestic segment. These sales are eliminated from the Consumer International segment results set forth in the table below. Product line revenues from external customers are as follows: | --- | --- | --- | --- | |------------------------------------|-------|---------------------------------------|--------------------------| | | | Three Months \nMarch 31, 2024 | Ended \nMarc ...

Church & Dwight (CHD) reported $1.5 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 5.1%. EPS of $0.96 for the same period compares to $0.85 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.49 billion, representing a surprise of +0.79%. The company delivered an EPS surprise of +11.63%, with the consensus EPS estimate being $0.86.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Church & Dwight (CHD) came out with quarterly earnings of $0.96 per share, beating the Zacks Consensus Estimate of $0.86 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.63%. A quarter ago, it was expected that this maker of household and personal products would post earnings of $0.64 per share when it actually produced earnings of $0.65, delivering a surprise of 1.56%.Over the l ...