Tigress Financial Remains On The Sidelines Following Colgate-Palmolive, Procter & Gamble Earnings

Philip Van Deusen of Tigress Financial reiterated Hold ratings on Colgate-Palmolive Company (NYSE: CL) and Procter & Gamble Co (NYSE: PG) in a mid-day note to clients on Monday.

Colgate-Palmolive: Little Change In Fundamentals

Despite improvements in its operating divisions last quarter, Van Deusen sees little reason to believe the company's profit fundamentals will improve going forward.

The analyst notes competitive pressures and the strengthening of the dollar will result in “little to no improvement” in return on capital and declining growth in EBITDAR margin over the next 12 months.

Procter & Gamble: Shares Fully Valued

Sales at Procter & Gamble have declined by 1 percent over the last year and the strengthening dollar will continue to be a headwind for the company's international business, according to Van Deusen.

The analyst also notes that while declining fuel prices may boost sales of Procter & Gamble products, shares are fully valued at today's level.

Procter & Gamble is projecting an increase in manufacturing productivity in 2015 with a projected $1 billion to $2 billion dollars in value creation in its global supply chain restructuring efforts. Van Deusen believes that if these initiatives translate to profit growth, a more optimistic rating on shares may be appropriate.