CHD - Church & Dwight Q4 Earnings: Increased Spending Is A Concern
2024-02-02 13:24:47 ET
Summary
- Church & Dwight Co., Inc. shares have performed well, rising over 22% in the past year, but there is little margin for error at its current valuation.
- The company reported solid quarterly results with revenue growth of 6.3% and organic growth of 5.3%.
- Church & Dwight has seen strong sales momentum in its key business lines and is well-positioned for ongoing revenue growth, but this is being offset partially by higher spending.
- At 29x forward earnings, Church & Dwight shares are pricing in future growth and have limited upside.
Shares of Church & Dwight Co., Inc. ( CHD ) have been a solid performer over the past year, rising over 22%, despite being a fairly non-cyclical business. Shares did pull back about 2% on Friday, following a solid quarterly report , but mixed guidance . With shares nearly 30x earnings, there was simply little margin for error. I would wait for shares to pull back further before initiating a position....
Church & Dwight Q4 Earnings: Increased Spending Is A Concern