CL
Higher gas spending could more than offset the average tax refund increase: MS
Article Summary
HOLD- Colgate-Palmolive Co. (NYSE: CLP) reported weaker-than-expected U.S. tax refunds, raising questions about how much support refunds will provide to household spending this year.
- Morgan Stanley said refunds are trending slightly below our expectations, with the average refund up 11% year over year to $3,462, while federal refunds are up 14% year-over-year, just shy of the 15% to 25% range that Morgan Stanley expected.
- The tax rate is now running below last year's level but above the firm's forecast, implying some downside risk to consumption-boosting 20% OBBBA boost to consumption in 26.
- Rising fuel costs could more than offset refund increases, with higher gas prices potentially weighing disproportionately on middle-income households, while low-income earners also spend less on gasoline in dollar terms.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 1.4% | 25% | 20.0 ptsMinimal (1.4%) - Very weak |
| EPS Growth Next 5Y ? | 5.8% | 25% | 20.0 ptsWeak (5.8%) - Low expectations |
| Target Price Upside ? | 15.4% | 20% | 60.0 ptsModerate Upside (15.4%) - Target: $95.94 vs Current: $83.11 |
| Gross Margin % ? | 60.1% | 15% | 80.0 ptsVery Healthy (60.1%) - High-quality margins |
| Drawdown from 52-Wk High ? | -16.3% | 15% | 40.0 ptsMild Pullback (-16.3%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About CL
- Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally.
- It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition.
- The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items.
- This segment markets and sells its products under the Colgate, Palmolive, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline, and Suavitel brands to a range of traditional and eCommerce retailers, wholesalers, and distributors, as well as dentists and skin health professionals.
- It also offers pharmaceutical products for dentists and other oral health professionals.
- The Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand; and a fresh pet food sold to pet specialty and other retailers in Australia under Prime100 brand.
- This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers.
- Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.