Baking soda, laundry detergent, toothpaste and other household products are in demand when the economy is booming and when it is on the verge (or possibly in) of a recession. A leading supplier of these products for the home, Church and Dwight (CHD) outperforms the market. On Thursday, Church & Dwight’s Relative Strength (RS) rating hit the elite level of 90-plus as it climbed to 91. That puts its stock in the top 9% of all stocks for stock performance. price.
Research shows that the stocks that make the biggest gains tend to have an RS rating of 80 or higher at the start of their moves.
Church & Dwight Other Rankings Also Shine
Church & Dwight sells Arm & Hammer baking soda, OxiClean cleaning products, Orajel tooth and gum pain relievers, and a host of other home and professional products.
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Among its other ratings, Church & Dwight stock also has a composite rating of 84. The IBD composite rating helps investors easily gauge the quality of a stock’s fundamental and technical metrics. The best growth stocks have a composite rating of 90 or higher.
Additionally, Church & Dwight, based in Ewing, New Jersey, has an EPS rating of 82 and a C+. Accumulation/distribution notation. The C+ A/D rating indicates that institutional investors are buying more stocks than they are selling, a bullish sign. And its relative strength line, which compares a stock’s performance against the S&P 500, is at its highest since late 2020.
Work on a fresh base
In terms of fundamentals, Church & Dwight stock is working on a handleless cup basis with an entry of 105.38. See if the stock can break out in volume at least 40% above normal. As of midday Thursday, it was trading down just over 1% amid market contraction. It is up about 19% from a mid-June low as it forms the right side of the base.
Church & Dwight’s earnings growth was flat, compared with the same quarter a year ago, in its last report at 83 cents per share. The previous two quarters, its EPS increased by 14%, then by 21%. Revenue rose 5% last quarter to nearly $1.3 billion. The next quarterly results are expected on July 29 in the morning.
Church & Dwight ranks 2nd among its peers in the soap and cleaning preparations industry group. Ocean Bio Chem (OSCI) is the highest ranked title within the group.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. This unique rating measures market leadership using a score from 1 (worst) to 99 (best) that shows how a stock’s price performance over the past 52 weeks compares to all other stocks in our database.
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