Church & Dwight: A Diverse Leader in Household Products Faces Market Challenges

Church & Dwight Co., Inc. (CHD) maintains a strong position with a market cap of $25.9 billion, establishing itself as a key player in household, personal care, and specialty products. It boasts a lineup of renowned brands, including ARM & HAMMER, Trojan, OxiClean, Waterpik, and Batiste, which cover a wide range of needs from laundry detergents and baking soda to dietary supplements and oral care products.

Recognized as a large-cap stock, Church & Dwight ranks among companies valued at $10 billion or more. It stands out as the top U.S. producer of sodium bicarbonate, valued for its ability to clean, deodorize, and buffer. The company operates internationally, catering to markets in Canada, Mexico, and the U.K., and sells through retail shops, e-commerce platforms, and various industrial customers.

Recently, shares of Church & Dwight have experienced a 6.8% drop from their 52-week high of $113.50, recorded on November 22. Despite this setback, the stock has shown modest gains of late, outpacing the S&P 500 Index’s ($SPX) 7.8% growth during the same three-month period.

In terms of long-term performance, CHD stock has climbed 11.9% year-to-date (YTD), although it still trails behind SPX, which boasts a remarkable 27.3% increase. Over the last year, CHD shares have appreciated by 15.7%, compared to SPX’s 28.7% returns during the same period.

As evidence of its potential growth, CHD stock has recently traded above its 50-day and 200-day moving averages since early November.

A notable boost to investor confidence came on November 1, when Church & Dwight shares surged 4.8% following a strong Q3 2024 earnings report. The results surpassed both revenue and earnings expectations, with adjusted earnings per share (EPS) at $0.79 and revenue totaling $1.5 billion. These uplifting numbers were attributed to solid consumer demand, successful new product launches, and expanded gross margins. The company reported a 4.3% increase in organic sales growth, driven by both volume and favorable pricing, and advanced its full-year gross margin guidance alongside positive cash flow forecasts.

In comparison, CHD has outperformed rival Kimberly-Clark Corporation (KMB), which experienced an 8.1% increase YTD and nearly 10% growth over the last 52 weeks.

While CHD has its challenges relative to SPX, analysts hold a cautiously positive view of the company’s future. The stock currently enjoys a “Moderate Buy” consensus rating across 23 analysts. Presently, CHD is trading below its mean price target of $108.62.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.