GO
Loading...

Why Colgate-Palmolive Is a Tech Company

Monday, 19 Mar 2012 | 7:24 PM ET
Cramer Eyes Stealth Tech Stocks
Mad Money host Jim Cramer reveals his surprising tech plays.

Don’t think of Colgate-Palmolive as just a soft goods play; instead think of it more like a technology company, “Mad Money” host Jim Cramer said Monday.

“I prefer to think of Colgate as an innovation engine [that’s] constantly reinventing the toothbrush and coming up with all sorts of new products in order to fend off the competition and take market share all over the world,” he said.

While the soft goods space has become a tough business, Colgate has been able to maintain or take share in their various markets thanks to that innovation, Cramer said.

Of course, not everything is perfect — higher commodity costs are a problem. However, Cramer thinks they are baked into the stock.

Right now, Colgate is selling for 16 times next year’s earnings and Cramer thinks it deserves to trade at a premium.

“The non-stop focus on innovation … should drive growth, and therefore the stock price, for many years to come,” he said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
CL
---

Featured

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.