Is Church & Dwight Stock Outperforming the Nasdaq?

Ewing, New Jersey-based Church & Dwight Co., Inc. (CHD) develops, manufactures, and markets household, personal care, and specialty products. Valued at a market cap of $26.6 billion, the company offers contraceptive products, laundry and dishwashing detergents, toothbrushes, shampoos, vitamins, pregnancy test kits, and hair removers. 

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and CHD fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the household & personal products industry. The company is best known for its strong portfolio of well-established brands, including Arm & Hammer, OxiClean, Trojan, First Response, and Batiste. It benefits from its focus on high-margin, value-oriented consumer products that maintain strong demand across economic cycles. Its strong distribution network, cost-efficient operations, and consistent innovation in product offerings give it a competitive advantage over others. 

This household products company is currently trading 7.2% below its 52-week high of $116.46, reached on Mar. 10. Shares of CHD have gained 1.9% over the past three months, outpacing the broader Nasdaq Composite’s ($NASX) 9.6% decline during the same time frame.

Moreover, on a YTD basis, shares of CHD are up 3.2%, outperforming NASX’s 8.4% loss. However, in the longer term, CHD has surged 4.9% over the past 52 weeks, lagging behind NASX’s 8.1% rise over the same time frame.

To confirm its recent bullish trend, CHD began has been trading above its 200-day and 50-day moving averages since late February. 

On Jan. 31, CHD released its Q4 earnings results. However, despite delivering better-than-expected Q4 revenue of $1.6 billion and adjusted earnings of $0.77 per share, which came in line with the Wall Street forecast, shares of CHD plunged 1.5%. Adding to the positives, compared to the prior-year quarter, revenue grew by 3.5%, while adjusted EPS increased 18.5%. Additionally, income from operations surged 18.8% to $256.7 million, highlighting the company’s strong operational performance. 

However, investors reacted negatively to the company’s underwhelming Q1 revenue guidance of $1.5 billion, which fell short of expectations. The sales outlook reflects continued caution regarding U.S. consumer spending as inflationary pressures persist and interest rates remain high.

Church & Dwight has lagged behind its rival, Kimberly-Clark Corporation’s (KMB) 11.3% gain over the past 52 weeks and 6% rise on a YTD basis. 

Looking at CHD’s recent outperformance relative to the Nasdaq, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 23 analysts covering it, and the mean price target of $110.38 suggests a slight 2.1% premium to its current levels.