The Zacks Analyst Blog Highlights:Colgate-Palmolive, Procter & Gamble, Clorox,
Inter Perfums and Bank of New York Mellon
CHICAGO, Jan. 31, 2013
CHICAGO, Jan. 31, 2013 /PRNewswire/ --Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Colgate-Palmolive Company
(NYSE:CL), Procter & Gamble Company (NYSE:PG), The Clorox Company (NYSE:CLX),
Inter Perfums Inc. (Nasdaq:IPAR) and The Bank of New York Mellon Corporation
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Here are highlights from Wednesday's Analyst Blog:
Will Colgate-Palmolive Beat in 4Q?
World's leading consumer goods dealer,Colgate-Palmolive Company (NYSE:CL) is
likely to beat the expectations when it reports its fiscal 2012 fourth-quarter
results on Jan 31.
Why a Likely Positive Surprise?
Our proven model shows that Colgate-Palmolive may beat the earnings because it
has the right combination of two key components – Positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method) and a Zacks Rank #2.
ZacksESP: Colgate-Palmolive currently has an Earnings ESP of +1.43%. This is
because the Most Accurate Estimate stands at $1.42, while the Zacks Consensus
Estimate is pegged at $1.40.
Zacks#2 Rank (Buy): Note that stocks with Zacks Rank #1, #2 and #3 have
significantly higher chances of beating the earnings. The sell rated stocks
(#4 and #5) should never be considered going into an earnings announcement.
The combination of Colgate-Palmolive's Zacks Rank #2 (Buy) and Earnings ESP of
+1.43% make us confident regarding a positive earnings beat by the company on
What is Driving the Better-than-Expected Earnings?
We believe that the company's strategic acquisition and divestment activities,
along with sustained focus on product innovation, provide it a platform to
take advantage of growth opportunities, and thereby augment profitability.
The company has met as well as surpassed the Zacks Consensus Estimate in
trailing four quarters with an average surprise of approximately 0.8%.
Other Stocks to Consider
Colgate-Palmolive is not the only firm looking up this earnings season. The
following companies – Colgate's industry peers – are also likely to beat the
earnings in the to-be-reported quarter:
Procter & Gamble Company (NYSE:PG) with Earnings ESP of +2.08% and a Zacks
Rank #2 (Buy).
The Clorox Company (NYSE:CLX) with Earnings ESP of +1.24% and a Zacks Rank #3
Inter Perfums Inc. (Nasdaq:IPAR
) has Earnings ESP of +13.33% and carries a Zacks Rank #3 (Hold).
BNY Mellon's Dismissal Plea Refused
The Supreme Court of the State of New York has rejected a dismissal plea of
The Bank of New York Mellon Corporation (NYSE:BK). A lawsuit was filed by The
Salvation Army accusing BNY Mellon of mismanaging funds.
The New York Judge has sustained three out four claims in the Salvation Army's
lawsuit against BNY Mellon's gross negligence, breach of fiduciary duty and
breach of contract. However, the claim for negligent misrepresentation was
dismissed. The Salvation Army is seeking $22 million in compensation.
In Apr 2011, the southern division of the Salvation Army had filed the lawsuit
alleging gross ignorance on part of BNY Mellon regarding the investment of the
charity's funds. The Salvation Army's instructions of investing in less risky
avenues were not followed by the bank. Rather, BNY Mellon went ahead and
invested funds in perilous mortgage-backed securities. Consequently, when the
markets collapsed, the Salvation Army suffered huge losses.
In its defense, BNY Mellon was quick to point that the investment strategy at
during that particular period was prudent enough and it had meticulously
executed the investment of the charity's funds. Further, the bank added that
it was willing to challenge the charges in the court.
Presently, BNY Mellon is not the only bank facing problems over investment in
mortgage-backed securities prior to 2008 financial crisis.
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