Company Overview - Church & Dwight Co., Inc. is the leading U.S. producer of sodium bicarbonate, commonly known as baking soda [2] - The company was founded in 1846 and manufactures a wide range of personal care, household, and specialty products under well-known brand names such as ARM & HAMMER®, TROJAN®, OXICLEAN®, FIRST RESPONSE®, NAIR®, ORAJEL®, XTRA®, BATISTE®, WATERPIK®, ZICAM®, THERABREATH®, HERO®, and TOUCHLAND® [2] Upcoming Events - Church & Dwight will host a webcast for the 2026 Analyst Day to discuss the fourth quarter and year-end 2025 earnings results on January 30, 2026, at 12:00 p.m. ET [1] - Media and investors can access the live webcast at the company's investor relations website starting at 12:00 p.m. ET, with a replay also available [1]

Company Overview - Church & Dwight Co., Inc. (CHD) has a market capitalization of $20.1 billion and operates in the consumer packaged goods sector, focusing on household, personal care, and specialty products across various segments [1] Financial Performance - Analysts project CHD to report an adjusted EPS of $0.85 for fiscal Q4 2025, reflecting a 10.4% increase from $0.77 in the same quarter last year [2] - For fiscal 2025, the expected adjusted EPS is $3.48, a 1.2% increase from $3.44 in fiscal 2024, with further growth anticipated to $3.78 in fiscal 2026, representing an 8.6% year-over-year increase [3] Recent Stock Performance - Over the past 52 weeks, CHD shares have decreased by 19.9%, underperforming the S&P 500 Index, which gained 16.4% during the same period [4] - Following the release of stronger-than-expected Q3 2025 results, CHD shares rose by 7.2%, with adjusted EPS of $0.81 exceeding Wall Street estimates and the company's own outlook [5] Growth and Guidance - Revenue for Q3 2025 increased by 5% year-over-year to $1.59 billion, surpassing forecasts, while cash from operations rose by 19.6% to $435.5 million [5] - Management has raised its full-year guidance, projecting an adjusted EPS of approximately $3.49 and cash from operations of around $1.2 billion [5] Analyst Sentiment - The consensus rating for CHD stock is "Moderate Buy," with nine analysts recommending "Strong Buy," one "Moderate Buy," eight "Hold," and three "Strong Sell" [6] - The average analyst price target for Church & Dwight is $97.78, indicating a potential upside of 16.6% from current levels [6]

Group 1 - Church & Dwight Co., Inc. (NYSE:CHD) is recognized as one of the 14 Best Dividend Aristocrats to invest in heading into 2026 [1] - Citi upgraded Church & Dwight from Sell to Neutral, raising its price target from $85 to $87, citing improved sales outlook for 2026 as year-over-year comparisons become easier [2] - The company completed a strategic review of its vitamins, minerals, and supplements business, announcing the sale of the VitaFusion and L'il Critters brands to Piping Rock Health Products [3] Group 2 - The sale includes the brands, related trademarks and licenses, and manufacturing and distribution facilities in Vancouver and Ridgefield, Washington, with closing expected before year-end, subject to standard conditions [4] - The VMS brands account for less than 5% of expected 2025 net sales, and Church & Dwight anticipates a one-time, after-tax charge of $40 million to $45 million in Q4 2025 [4] - Founded in 1846, Church & Dwight is the leading US producer of sodium bicarbonate and offers a diverse range of personal care, household, and specialty products under well-known brand names [5]

Core Insights - Church & Dwight Co., Inc. (NYSE:CHD) is recognized as one of the 15 Best Stocks to Buy for the Long Term [1] - Argus has lowered its price target for CHD to $102 from $110 while maintaining a Buy rating, citing a renewed brand focus that could support an expected 8% annual EPS growth [2] - The company reported a revenue of $1.6 billion for Q3 2025, a 5% increase year-over-year, exceeding analysts' estimates by $49.8 million [4] Financial Performance - CHD's organic sales grew by 3.4%, with domestic sales increasing by 2.3% and international sales rising by 7.7% [4] - The company achieved a 19.6% year-over-year growth in operating cash flow, amounting to $435.5 million [4] Strategic Initiatives - CEO Richard Dierker highlighted the July acquisition of TOUCHLAND, the fastest-growing hand sanitizer brand in the US, which has shown double-digit consumption growth [3]

Core Viewpoint - Church & Dwight Co., Inc. has completed a strategic review of its vitamin, minerals, and supplement (VMS) business and has reached a definitive agreement to sell the VitaFusion® and L'il Critters® brands to Piping Rock Health Products, Inc. [1] Group 1: Transaction Details - The agreement includes the sale of the VitaFusion® and L'il Critters® brands, relevant trademarks and licenses, as well as the company's manufacturing and distribution facilities located in Vancouver and Ridgefield, Washington [1]

Core Insights - Church & Dwight Co., Inc. (CHD) is a significant player in the household and personal care products industry, with a market capitalization of $20.3 billion [1][2] Financial Performance - CHD stock reached an all-time high of $116.46 on March 10 but is currently trading 29.9% below that peak [3] - Over the past three months, CHD stock has declined by 13.7%, underperforming the Consumer Staples Select Sector SPDR Fund (XLP), which dipped by 3.4% [3] - Year-to-date, CHD stock prices have fallen by 22.1%, and over the past 52 weeks, they have decreased by 23.9%, while XLP experienced a 1% dip in 2025 and a 5.6% drop over the past year [4] - Following the release of better-than-expected Q3 results on October 31, CHD stock surged by 7.2% [5] - The company reported a 5% year-over-year increase in net sales to $1.6 billion, exceeding expectations by 3.3% [5] - Adjusted EPS rose by 2.5% year-over-year to $0.81, surpassing consensus estimates by 11% [5] Market Position - CHD stock has outperformed its peer, The Clorox Company (CLX), which saw a 37.9% decline in 2025 and a 39.6% drop over the past 52 weeks [6] - Among 21 analysts covering CHD stock, the consensus rating is a "Moderate Buy," with a mean price target of $98.28, indicating a 20.4% upside potential from current levels [6]

Industry Overview - The Consumer Products – Staples industry is facing a challenging demand environment due to stretched household budgets and value-driven purchasing decisions [1][5] - Companies are experiencing an uneven cost environment, with elevated raw material and logistics costs impacting margins [2][4] - The industry includes a wide range of everyday household and personal-use items, distributed through various retail channels, including digital platforms [3] Current Trends - Rising costs in raw materials, labor, and transportation are pressuring profit margins, leading companies to implement cost-cutting strategies [4] - Increased consumer spending volatility is observed, particularly among lower-income households, affecting sales across the industry [5] - Companies are sensitive to currency fluctuations, with a stronger U.S. dollar posing risks to international revenue [6] Strategic Initiatives - Companies are pursuing strategic optimization to enhance revenue, focusing on e-commerce, innovation, and portfolio reshaping [7] - Many firms are investing in digital transformation and marketing to drive growth and improve operational efficiency [4][7] Industry Performance - The Zacks Consumer Products – Staples industry ranks 183, placing it in the bottom 24% of over 243 Zacks industries, indicating dull prospects [8][9] - The industry has underperformed the S&P 500 index, losing 12.2% over the past six months compared to the broader sector's decline of 5.2% [12] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 18.21X, lower than the S&P 500's 23.44X and the sector's 16.35X [15] Company Highlights - **Ollie's Bargain**: This company is reinforcing its competitive position through a disciplined value-driven model, with a Zacks Rank 2 (Buy) and an unchanged EPS estimate of $3.82, indicating 16.5% year-over-year growth [18][19] - **Procter & Gamble**: With a Zacks Rank 3 (Hold), it demonstrates market leadership and has an unchanged EPS estimate of $7.01, reflecting 2.6% growth from the previous year [22][23] - **Church & Dwight**: Also holding a Zacks Rank 3, it benefits from a resilient portfolio and has seen its EPS estimate increase to $3.48, indicating 1.2% growth [26][27] - **Grocery Outlet**: This company, with a Zacks Rank 3, has an EPS estimate of 79 cents, reflecting a 2.6% increase, supported by its differentiated value model [30][31]

Core Insights - The competitive landscape between Procter & Gamble (PG) and Church & Dwight (CHD) highlights contrasting business models, with PG being a market leader and CHD as a value-driven challenger [1][2] Procter & Gamble (PG) - PG has achieved its 40th consecutive quarter of organic sales growth, with Q1 fiscal 2026 revenues reaching $22.39 billion, reflecting its dominance in the consumer products sector [3] - The company’s portfolio includes 10 daily-use categories, with eight showing growth or stability in organic sales, driven by strong brands like Tide, Pampers, and Gillette [4] - PG's management is focusing on an integrated superiority strategy, enhancing product performance and innovation, as seen in significant upgrades to Tide and Pampers [5][6] - Financially, PG reported a 3% increase in core EPS and a free cash flow productivity of 102%, with plans to return approximately $15 billion to shareholders in fiscal 2026 [7] Church & Dwight (CHD) - CHD reported a 5% net sales growth in Q3 2025, with organic sales up 3.4%, primarily due to a 4% increase in volume [8][9] - The company is expanding its market share with strong performance from brands like THERABREATH and ARM & HAMMER, and it achieved 7.7% organic growth internationally [10] - CHD's marketing investment increased to 12.8% of sales, supporting new product launches and acquisitions, such as TOUCHLAND, which targets younger consumers [11] - Financially, CHD's adjusted EPS grew by 2.5% in Q3, with cash flow growth of 19.6%, and it has reduced its expected tariff impact for 2025 [12] Comparative Analysis - The Zacks Consensus Estimate indicates PG's fiscal 2026 sales and EPS growth at 3.2% and 2.6%, respectively, while CHD's estimates suggest 1.6% sales growth and 1.2% EPS growth for 2025 [13][16] - Year-to-date, PG's stock has declined by 11.4%, while CHD's has fallen by 19.6%, with both trading below historical P/E medians [17][18] - PG is trading at a forward P/E of 20.7, while CHD's is at 22.38, reflecting CHD's premium valuation due to its consistent market share growth [18][19] Conclusion - Both companies face challenges in the current market, but PG offers stability and a valuation discount, while CHD presents a higher growth potential with a focus on share gains [20][24]

Core Insights - Church & Dwight Co., Inc. (CHD) has a market capitalization of $20.2 billion and specializes in household, personal care, and specialty products [1] Performance Overview - CHD shares have underperformed the broader market, declining 25.2% over the past year, while the S&P 500 Index has increased nearly 11% [2] - Year-to-date, CHD stock is down 19.8%, compared to a 12.3% rise in the S&P 500 [2] - Compared to the Consumer Staples Select Sector SPDR Fund (XLP), which has declined about 3.9% over the past year, CHD's performance is significantly worse [3] Recent Financial Results - On October 31, CHD reported Q3 results, with adjusted EPS of $0.81, surpassing Wall Street expectations of $0.73 [4] - The company's revenue for the quarter was $1.6 billion, exceeding the forecast of $1.5 billion [4] - For the full fiscal year, CHD expects adjusted EPS to be $3.49 [4] Analyst Ratings and Expectations - Analysts project CHD's EPS to grow 1.2% to $3.48 for the current fiscal year ending in December [5] - CHD has a strong earnings surprise history, beating or matching consensus estimates in the last four quarters [5] - Among 21 analysts covering CHD, the consensus rating is "Moderate Buy," with eight "Strong Buy," one "Moderate Buy," eight "Holds," and four "Strong Sells" [5] Price Targets - The analyst sentiment has become less bullish compared to a month ago, with nine analysts now suggesting a "Strong Buy" [6] - Oppenheimer's Rupesh Parikh maintains a "Buy" rating with a price target of $100, indicating a potential upside of 19% [6] - The mean price target is $98.72, representing a 17.5% premium to current levels, while the highest price target of $114 suggests a notable upside potential of 35.7% [6]

Summary of Key Points from the Conference Call Industry Overview - The focus on AI investments has overshadowed other potential investment opportunities in various sectors, including semiconductors, power plants, and capital goods [1][2] - Companies not directly benefiting from AI are highlighted as compelling investment options, such as Freeport-McMoRan, which has indirect exposure to AI [1] Core Insights and Arguments - A screening of Buy-rated US stocks not included in AI/power/infrastructure ETFs identified 82 stocks with positive 3-month EPS revisions and trading below a market multiple of 26x, leading to a final list of 16 equities [2] - Savita Subramanian models an 8% return for the S&P over the next 12 months, emphasizing the importance of owning average stocks rather than the index [3] - Risks associated with AI investments include potential declines in middle-income white-collar jobs, which could impair consumer spending [3] - Hyperscalers investing heavily in AI technology may face de-rating if monetization does not meet expectations, as they currently trade at high multiples despite capital-intensive spending [3] Notable Companies and Their Performance - **Amcor PLC (AMCR)**: Recent acquisition of Berry Global is expected to enhance valuation, with EBITDA projected to approach $3.8 billion for F26 [11][12] - **AT&T Inc. (T)**: Strong performance metrics with 405k post-paid phone net additions, projecting a 9% EPS growth in 2026 [15][17] - **BGC Group**: Dominates the energy derivatives market, with expected growth in volumes due to increased power consumption driven by cloud and AI adoption [18][19] - **Church & Dwight (CHD)**: Positioned to benefit from consumer trade-down trends, with organic sales growth of 3.4% in Q3 [20][21] - **Dollar General (DG)**: Improved execution and a focus on lower price points are expected to boost sales, with a current valuation below the 5-year average [23][27] - **Freeport-McMoRan (FCX)**: Anticipates a restart of the Grasberg mine, with bullish forecasts for copper prices due to supply challenges [32][34] - **Henry Schein (HSIC)**: Transitioning to a higher-margin business model, with a target of 60% operating income from high-growth products by 2027 [38][39] - **Progressive Corp (PGR)**: Strong EPS revisions and expected dividend announcements are anticipated to drive growth [65][67] - **Walt Disney Co. (DIS)**: Growth drivers intact with expectations for double-digit growth in Entertainment operating income [80] Additional Important Insights - The market is currently cautious, providing room for multiple expansions as fundamentals improve across various sectors [14] - Regulatory improvements in Connecticut are expected to enhance Eversource's valuation [28][30] - Viking Holdings is positioned for premium valuation due to its unique brand and superior margins in the cruise industry [76][79] - The overall sentiment indicates a potential for significant investment opportunities outside the AI sector, as companies adapt to changing market dynamics and consumer behaviors [1][2][3]