Colgate-Palmolive is one of the worldwide leaders in household products and personal care sector. The company’s products include toothpaste, shampoos, dishwashing liquid and laundry products, as well as pet nutrition products for cats and dogs thanks to its division Hill’s Pet Nutrition (13% of company sales).

Colgate reported a strong Q1 results, but in line with Thomson Reuters’ expectations. Group’s revenue $4.2 billion, up of 5% versus the same period one year previous, with organic sales grew 6.5%, also diluted earnings per share grew of 6% to $1.23. The largest company’s market remains Latin America 28% of total sales, and for the first quarter organic growth remained very strong at 13.5%. Europe/South Pacific is once Colgate’s weakest division, with organic sales down 2%. The stock is currently trading 18 times Thomson Reuters’ EPS estimate for full year 2012, more expensive than personal and household goods sector’s average, which is still among sectors most performing concerning earnings per share.

The share has outperformed the index S&P 500 more than 18%, since one year, reaching historical highs on the threshold of USD 100. For beginning of the year, the share is in strong bullish trend, in fact the stock has gained more than 14%. We forecast a technical pause, which could push the share on the short-term support and 20-days moving average at USD 98.5. This level could give a good entry point to bet continuation of bullish trend supported by moving averages and to aim new historic highs of USD 106.5, repeating last acceleration. We suggest a stop loss at USD 97.