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5-Star Stocks Poised to Pop: Colgate-Palmolive

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Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, consumer products giant Colgate-Palmolive (NYSE: CL  ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Colgate's business, and see what CAPS investors are saying about the stock right now.

Colgate facts

Headquarters (Founded)

New York City (1806)

Market Cap

$37.30 billion

Industry

Household Products

TTM Revenue

$14.85 billion

Management

CEO Ian Cook (since 2007)

CFO Stephen Patrick (since 1996)

Major Brands

Colgate, Palmolive, Mennen, Irish Spring

Return on Capital (average last 3 years)

30.77%

Competitors

Procter & Gamble (NYSE: PG  ) ,

Church & Dwight (NYSE: CHD  )

CAPS members bullish on CL also bullish on

Johnson & Johnson (NYSE: JNJ  ) ,

Coca-Cola (NYSE: KO  )

CAPS members bearish on CL also bearish on

McDonald's (NYSE: MCD  ) ,

Wal-Mart Stores (NYSE: WMT  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 98% of the 235 All-Star members who have rated Colgate believe the stock will outperform the S&P 500 going forward. These All-Star bulls include TMFdatabasebob and HimuraBattousai, both of whom are ranked in the top 15% of our community.

In 2007, TMFdatabasebob reminded our community that:

In Colgate-Palmolive, you have an internationally diversified maker of household products. This financially rock-solid company pays a dividend above 2% that has been - and will continue - growing that dividend at a rate well in excess of inflation. When you approach retirement age (and a lot of baby-boomers are), this company will certainly be on your short list of retirement investments. Are you going to wait for everyone else to get in before you, or are you going to buy this stock now?

A more recent pitch from HimuraBattousai shares that sentiment, underlining the blue-chip's basic, long-term bull case. "Colgate in the toothpaste business is the number one brand in the world. Everyone needs to brush their teeth. Emerging markets are on the rise and that's where they make their money."

What do you think about Colgate-Palmolive, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

On Oct. 7, 2008, Fool co-founder David Gardner and his Motley Fool Pro team will invest $1 million in a portfolio designed to help you make money in any market. In the coming weeks, the team, relying heavily on proprietary CAPS "community intelligence" data, will establish long and short positions in a broad range of securities, including common stocks, publicly traded put and call options, and exchange-traded funds. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Johnson & Johnson is a Motley Fool Income Investor recommendation. Coca-Cola and Wal-Mart are Inside Value picks. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 08, 2008, at 11:34 AM, r11mcbell wrote:

    The hot stocks sound great. Although some of the experts are worried about inflation they have forgot that high enemployment brings low inflation. The good earnings they generate will not be degraded by inflation.

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Related Tickers

5/24/2012 4:04 PM
CL $99.13 Up +0.74 +0.75%
Colgate-Palmolive… CAPS Rating: *****
MCD $91.53 Up +0.05 +0.05%
McDonald's Corp CAPS Rating: *****
PG $62.57 Up +0.18 +0.29%
The Procter & Gamb… CAPS Rating: *****
WMT $65.07 Up +0.49 +0.76%
Wal-Mart Stores CAPS Rating: ****
CHD $53.75 Up +0.37 +0.69%
Church & Dwight Co… CAPS Rating: *****
JNJ $63.10 Up +0.44 +0.70%
Johnson & Johnson CAPS Rating: *****
KO $75.56 Up +1.01 +1.35%
The Coca-Cola Comp… CAPS Rating: *****

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