3 Reasons Why Colgate-Palmolive (CL) Is a Great Growth Stock

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those with genuine growth prospects can be challenging. Colgate-Palmolive (CL) is highlighted as a recommended growth stock based on its favorable Growth Score and top Zacks Rank [1][6]. Earnings Growth - Colgate-Palmolive has a historical EPS growth rate of 2.1%, but projected EPS growth for this year is expected to be 9%, surpassing the industry average of 8.4% [3]. Asset Utilization Ratio - The company's sales-to-total-assets (S/TA) ratio is 1.21, indicating that it generates $1.21 in sales for every dollar in assets, compared to the industry average of 0.95. Additionally, sales are projected to grow by 3.8% this year, while the industry average is only 1.6% [4]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Colgate-Palmolive, with the Zacks Consensus Estimate for the current year increasing by 0.9% over the past month [5]. Overall Assessment - Colgate-Palmolive has achieved a Growth Score of A and holds a Zacks Rank 2, indicating it is a solid choice for growth investors due to its positive earnings estimate revisions and strong growth metrics [6][7].