Consumer stocks are now as risky as they've ever been. Unemployment's historically high, consumers are spooked, and subpar earnings abound, as companies pay the price for lost competitive advantage or fiscal irresponsibility. But tough times can offer investors the best chance to buy stocks.
Even if stock prices are low, investors still need to be careful. Many companies simply won't survive the recession in their current form. And even if you love an investment, it's always Foolish to play devil's advocate, probing for its potential weak spots. To keep you and your portfolio ready for anything, I've highlighted two reasons to loathe consumer staples company Colgate-Palmolive (NYSE: CL).
Pricy vs. peers I've previously sung the praisesof this well-known company, which markets brands such as Irish Spring, Speed Stick, Murphy's Oil Soap, and Palmolive dishwashing products. Now, I'm scouring away the bright spots, looking for vulnerabilities worthy of investor loathing.
What emerges after just a few swipes of steel wool concerns the stock more than the company: Shares are no bargain. Let's check out the peer-comparisons below to see exactly what I mean.
Company
 Share Price
Current-year P/E *
PEG Ratio
Price-to-Sales Ratio
Colgate-Palmolive
$75.68
17.7
1.8
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