With a market cap of $25.9 billion, Ewing, New Jersey-based Church & Dwight Co., Inc. (CHD) is a leading developer, manufacturer, and marketer of household, personal care, and specialty products. Its portfolio features power brands such as ARM & HAMMER, Trojan, OxiClean, Waterpik, and Batiste, with products ranging from laundry detergents and baking soda to dietary supplements and oral care solutions.
Companies valued at $10 billion or more are generally described as “large-cap” stocks and Church & Dwight fits right into that category. It is the largest U.S. producer of sodium bicarbonate, known for its cleaning, deodorizing, leavening, and buffering properties. Operating globally across markets like Canada, Mexico, and the U.K., Church & Dwight serves consumers through retail stores, e-commerce platforms, and industrial customers in various industries.
Despite a 6.8% decline from its 52-week high of $113.50 reached on Nov. 22, shares of this household and personal products maker have risen marginally over the past three months, lagging behind the broader S&P 500 Index’s ($SPX) 7.8% return over the same time frame.
In the longer term, CHD stock is up 11.9% on a YTD basis, underperforming SPX’s 27.3% gains. Moreover, shares of CHD have rallied 15.7% over the past 52 weeks, compared to SPX’s 28.7% returns over the same time frame.
To confirm its bullish trend, CHD has been trading above its 50-day and 200-day moving averages since early November.
Shares of Church & Dwight surged 4.8% on Nov. 1 due to the company's impressive Q3 2024 earnings report, which exceeded top and bottom-line expectations. Adjusted EPS of $0.79 and revenue of $1.5 billion surpassed the consensus estimates, driven by strong consumer demand, successful new product launches, and gross margin expansion. Organic sales growth of 4.3%, fueled by volume gains and favorable pricing, further boosted investor confidence. Additionally, management raised its full-year adjusted gross margin expansion guidance and highlighted strong cash flow projections, reinforcing optimism about the company's financial health and future performance.
Also, CHD has outpaced its rival, Kimberly-Clark Corporation’s (KMB) 8.1% gain on a YTD basis and nearly 10% return over the past 52 weeks.
Despite CHD’s underperformance relative to SPX, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 23 analysts covering the stock, and as of writing, CHD is trading below its mean price target of $108.62.
