Colgate-Palmolive (CL) is a Top-Ranked Momentum Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and improve their investment confidence [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics, aiding in identifying stocks with high potential for market outperformance [2][3][4] Zacks Style Scores - The Value Score identifies attractive and discounted stocks using financial ratios like P/E and Price/Sales [2] - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings and cash flow [3] - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price change and monthly earnings estimate changes [3] - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth, and momentum characteristics [4] Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [5] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [5] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [6] Company Spotlight: Colgate-Palmolive (CL) - Colgate-Palmolive is focusing on innovation and expanding its Naturals product range in response to consumer demand for organic ingredients, achieving a global household penetration of 61.6% [7] - Currently rated 3 (Hold) with a VGM Score of B, CL has a Momentum Style Score of B and has seen a 0.2% increase in shares over the past month [7] - Recent upward revisions in earnings estimates for fiscal 2024 have increased the Zacks Consensus Estimate by $0.04 to $3.53 per share, with an average earnings surprise of 4.4% [7][8]