Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
ALERT

Memorial Day Sale: Dividend.com Premium Price Slashed — Redeem Now

Dividend logo

In this stock market environment, it is hard to find winners. Many sectors including energy, technology, and financials are struggling—but one area that remains strong is consumer products. Among consumer based companies, WD-40 Company (WDFC ) is a notable outperformer. The stock is up 28% just in the past one year, and it is up 6% year-to-date. It has handily outperformed the S&P 500 Index, which is down 9% in the past year.

Shares of WD-40 recently closed at all-time highs. In fact, the stock has posted positive returns for the trailing one-year, three-year, and five-year periods. The company is doing a good job of growing sales and earnings, but the bulk of the gains in stock price are due to multiple expansion. Investors appear to be extremely optimistic about the company’s growth prospects, but it is doubtful whether this level of optimism is warranted. Going forward, investors should expect continued growth in earnings per share and dividends. However, the current valuation does not offer investors a margin of safety. As a result, income and value investors should wait for a decline in the stock price in order to get a better buying opportunity.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Shutterstock 593856878%20%281%29
News

The Market Wrap For May 26: Game On!

Politics – or in this case, the lack of – continues to be a primary driver of the market’s...

News

Trending: U.S.-Saudi Arabia Weapons Deal Drives Defense Stocks

Dividend.com analyzes the search patterns of our visitors each week. By sharing these trends with...

Dividend Investing Ideas Center

Critical Facts You Need to Know About Preferred Stocks

Have you ever wished for the safety of bonds, but the return potential of common stocks? If so,...