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As many have become aware, CPI days have consistently been a pivotal point for the market. Things will be the same this time around, especially as many seek clarification following a historical tightening campaign.
And tomorrow, we’ll get the latest dose of CPI data.
For those looking to shield themselves from the inevitable volatility, three low-beta stocks – Church & Dwight Co. (CHD - Free Report) , Kimberly-Clark (KMB - Free Report) , and Colgate-Palmolive (CL - Free Report) – could be of interest. Let’s take a closer look at each.
Church & Dwight Co.
Church & Dwight Co. develops, manufactures, and markets various household, personal care, and specialty products. The company sports a favorable Zacks Rank #2 (Buy).
CHD posted a big beat in its latest quarterly report, exceeding the Zacks Consensus EPS estimate by nearly 12% and delivering a positive 5.7% revenue surprise. In fact, Church & Dwight Co. has exceeded earnings expectations by an average of nearly 10% across its last four quarters.
The company’s revenue growth has been steady, as we can see in the chart below.
Image Source: Zacks Investment Research
In addition, CHD’s growth is forecasted to remain stable, with estimates calling for 4.4% earnings growth in its current fiscal year (FY23) and a further 9% in FY24. Revenue growth is also apparent, forecasted to climb 7% in FY23 and 4% in FY24.
Image Source: Zacks Investment Research
Kimberly-Clark
Kimberly-Clark is principally engaged in manufacturing and marketing a wide range of consumer products worldwide. The stock boasts the highly-coveted Zacks Rank #1 (Strong Buy).
A massive perk of KMB shares is the dividend; shares currently yield a rock-solid 3.5%, with the company’s payout growing by roughly 4% across the last five years. As we can see below, the current yield is nicely above the Zacks Consumer Staples sector average.
Image Source: Zacks Investment Research
Value-conscious investors may not find Kimberly-Clark shares as attractive, further reflected by the Style Score of “D” for Value. KMB shares presently trade at a 21.8X forward earnings multiple, above the 19.8X five-year median modestly and the Zacks sector average.
Image Source: Zacks Investment Research
Colgate-Palmolive
Colgate-Palmolive distributes and produces various consumer products, including household, health care, and personal care products. The stock is currently a Zacks Rank #2 (Buy). Similar to CHD, Colgate-Palmolive carries a solid growth profile, with earnings forecasted to climb 5.7% in its current fiscal year (FY23) on 6.3% higher revenues.
And looking ahead, estimates allude to a further 10% earnings growth on 4.3% higher revenues for FY24.
Image Source: Zacks Investment Research
Impressively, CL holds the rank of a Dividend King, reflecting an unparalleled commitment to shareholders through 50+ years of increased payouts. Shares currently yield 2.5% annually with a payout ratio sitting at 64% of earnings.
Image Source: Zacks Investment Research
Bottom Line
With CPI looming, investors may want to visit low-beta stocks as a shield against volatility. As we all know by now, CPI days have become quite a market-moving event.
All three low-beta stocks above – Church & Dwight Co. (CHD - Free Report) , Kimberly-Clark (KMB - Free Report) , and Colgate-Palmolive (CL - Free Report) – could be considerations for those looking for a shield against volatility.
All three sport favorable Zacks Ranks, indicating near-term optimism.
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3 Stocks to Buy for Decreased Volatility
As many have become aware, CPI days have consistently been a pivotal point for the market. Things will be the same this time around, especially as many seek clarification following a historical tightening campaign.
And tomorrow, we’ll get the latest dose of CPI data.
For those looking to shield themselves from the inevitable volatility, three low-beta stocks – Church & Dwight Co. (CHD - Free Report) , Kimberly-Clark (KMB - Free Report) , and Colgate-Palmolive (CL - Free Report) – could be of interest. Let’s take a closer look at each.
Church & Dwight Co.
Church & Dwight Co. develops, manufactures, and markets various household, personal care, and specialty products. The company sports a favorable Zacks Rank #2 (Buy).
CHD posted a big beat in its latest quarterly report, exceeding the Zacks Consensus EPS estimate by nearly 12% and delivering a positive 5.7% revenue surprise. In fact, Church & Dwight Co. has exceeded earnings expectations by an average of nearly 10% across its last four quarters.
The company’s revenue growth has been steady, as we can see in the chart below.
Image Source: Zacks Investment Research
In addition, CHD’s growth is forecasted to remain stable, with estimates calling for 4.4% earnings growth in its current fiscal year (FY23) and a further 9% in FY24. Revenue growth is also apparent, forecasted to climb 7% in FY23 and 4% in FY24.
Image Source: Zacks Investment Research
Kimberly-Clark
Kimberly-Clark is principally engaged in manufacturing and marketing a wide range of consumer products worldwide. The stock boasts the highly-coveted Zacks Rank #1 (Strong Buy).
A massive perk of KMB shares is the dividend; shares currently yield a rock-solid 3.5%, with the company’s payout growing by roughly 4% across the last five years. As we can see below, the current yield is nicely above the Zacks Consumer Staples sector average.
Image Source: Zacks Investment Research
Value-conscious investors may not find Kimberly-Clark shares as attractive, further reflected by the Style Score of “D” for Value. KMB shares presently trade at a 21.8X forward earnings multiple, above the 19.8X five-year median modestly and the Zacks sector average.
Image Source: Zacks Investment Research
Colgate-Palmolive
Colgate-Palmolive distributes and produces various consumer products, including household, health care, and personal care products. The stock is currently a Zacks Rank #2 (Buy). Similar to CHD, Colgate-Palmolive carries a solid growth profile, with earnings forecasted to climb 5.7% in its current fiscal year (FY23) on 6.3% higher revenues.
And looking ahead, estimates allude to a further 10% earnings growth on 4.3% higher revenues for FY24.
Image Source: Zacks Investment Research
Impressively, CL holds the rank of a Dividend King, reflecting an unparalleled commitment to shareholders through 50+ years of increased payouts. Shares currently yield 2.5% annually with a payout ratio sitting at 64% of earnings.
Image Source: Zacks Investment Research
Bottom Line
With CPI looming, investors may want to visit low-beta stocks as a shield against volatility. As we all know by now, CPI days have become quite a market-moving event.
All three low-beta stocks above – Church & Dwight Co. (CHD - Free Report) , Kimberly-Clark (KMB - Free Report) , and Colgate-Palmolive (CL - Free Report) – could be considerations for those looking for a shield against volatility.
All three sport favorable Zacks Ranks, indicating near-term optimism.