Colgate-Palmolive (CL) Stock Declinng Today Following Ratings Cut

NEW YORK (TheStreet) -- Shares of Colgate-Palmolive Co  are declining, down 0.84% to $69.28 in pre-market trading Monday, after the consumer goods company was downgraded by analysts at Goldman Sachs to "sell" from "neutral" this morning. Analysts at the firm set a 12-month price target of $64 on shares of Colgate-Palmolive. Goldman analysts said the company's foreign-exchange exposure is substantial. The firm added that some investors underestimate the margin implications. New York City-based Colgate-Palmolive is a consumer products company with oral care, personal care, home care, and pet nutrition products marketed in more than 200 countries and territories around the world. Separately, TheStreet Ratings team rates COLGATE-PALMOLIVE CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate COLGATE-PALMOLIVE CO (CL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated." Highlights from the analysis by TheStreet Ratings Team goes as follows: The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Products industry. The net income increased by 11.3% when compared to the same quarter one year prior, going from $564.00 million to $628.00 million. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Household Products industry and the overall market, COLGATE-PALMOLIVE CO's return on equity significantly exceeds that of both the industry average and the S&P 500. Net operating cash flow has slightly increased to $906.00 million or 7.98% when compared to the same quarter last year. In addition, COLGATE-PALMOLIVE CO has also modestly surpassed the industry average cash flow growth rate of 1.42%. COLGATE-PALMOLIVE CO has improved earnings per share by 13.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COLGATE-PALMOLIVE CO reported lower earnings of $2.36 versus $2.39 in the prior year. This year, the market expects an improvement in earnings ($2.96 versus $2.36). Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.9%. Since the same quarter one year prior, revenues slightly dropped by 3.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. You can view the full analysis from the report here: CL Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015

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