This article is evidence that advertising does work! Colgate has significantly increased their marketing budget, and the results have been very successful.
New products and more advertising have boosted Colgate-Palmolive’s business worldwide and generated record-high profit margins. The consumer-products giant’s shares are outperforming the market and should continue to soar.
A toothpaste maker may not have the appeal of a high-tech stock, but its profits certainly do.
Consider consumer-products giant Colgate-Palmolive, which today said:
• quarterly earnings per share grew 13%,
• gross margins rose to a record high 57.4%,
• their share of the toothpaste market grew to 14.9%, and
• the company’s share of the manual toothbrush jumped to 25.8%, an all-time high.
What makes the story even more compelling is that Colgate’s success is happening in every geographic region and across all product lines. In fact, the company posted double-digit volume growth in every region outside North America. Bolstered by a slew of new products and its aggressive ad campaign, the company’s share of the Latin American toothpaste market rose to a record 75.1%. Colgate is also making inroads into such high-growth markets as India and China.
Stock outperforming S&P 500
Even better, consider that the stock has gained 18% over the past year and 57% over the last 30 months. By contrast, the S&P 500 Index is up by 14% and 35%, respectively. With Colgate delivering steady double-digit growth and the stock on the verge of breaking to a new 52-week high, its shares should continue to outperform the market.
Assuming a price multiple of 25 times earnings, slightly below what Colgate has traded at recently and considerably below the industry average of 32 times, the stock has upside over the next nine to 12 months to the $83 area, or 22% above current levels. Longer term, look for a move to the mid-$90s. Toss in a dividend yield of more than 2.13% and those are some pretty attractive returns for a stodgy old consumer-products company.
http://articles.moneycentral.msn.com/Investing/StreetPatrol/ColgateStodgyCompanyButStockIsSexy.aspx
For your advertising to stand out, it must be distinct, understandable and memorable. Great creative work should exist to establish your image and produce award-winning results.
Strategic Marketing has a distinguished track record of producing results for our clients. Clients benefit from our experience in and understanding of media and our ability to garner the most value for their investment. For more information, call as at 561.688.8155 or visit http://thinkstrategic.com/.
New products and more advertising have boosted Colgate-Palmolive’s business worldwide and generated record-high profit margins. The consumer-products giant’s shares are outperforming the market and should continue to soar.
A toothpaste maker may not have the appeal of a high-tech stock, but its profits certainly do.
Consider consumer-products giant Colgate-Palmolive, which today said:
• quarterly earnings per share grew 13%,
• gross margins rose to a record high 57.4%,
• their share of the toothpaste market grew to 14.9%, and
• the company’s share of the manual toothbrush jumped to 25.8%, an all-time high.
What makes the story even more compelling is that Colgate’s success is happening in every geographic region and across all product lines. In fact, the company posted double-digit volume growth in every region outside North America. Bolstered by a slew of new products and its aggressive ad campaign, the company’s share of the Latin American toothpaste market rose to a record 75.1%. Colgate is also making inroads into such high-growth markets as India and China.
Stock outperforming S&P 500
Even better, consider that the stock has gained 18% over the past year and 57% over the last 30 months. By contrast, the S&P 500 Index is up by 14% and 35%, respectively. With Colgate delivering steady double-digit growth and the stock on the verge of breaking to a new 52-week high, its shares should continue to outperform the market.
Assuming a price multiple of 25 times earnings, slightly below what Colgate has traded at recently and considerably below the industry average of 32 times, the stock has upside over the next nine to 12 months to the $83 area, or 22% above current levels. Longer term, look for a move to the mid-$90s. Toss in a dividend yield of more than 2.13% and those are some pretty attractive returns for a stodgy old consumer-products company.
http://articles.moneycentral.msn.com/Investing/StreetPatrol/ColgateStodgyCompanyButStockIsSexy.aspx
For your advertising to stand out, it must be distinct, understandable and memorable. Great creative work should exist to establish your image and produce award-winning results.
Strategic Marketing has a distinguished track record of producing results for our clients. Clients benefit from our experience in and understanding of media and our ability to garner the most value for their investment. For more information, call as at 561.688.8155 or visit http://thinkstrategic.com/.
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