3 Reasons to Avoid CHD and 1 Stock to Buy Instead

September 03, 2025 at 00:00 AM EDT

CHD Cover Image

Over the past six months, Church & Dwight’s stock price fell to $93. Shareholders have lost 17% of their capital, which is disappointing considering the S&P 500 has climbed by 9.7%. This may have investors wondering how to approach the situation.

Is now the time to buy Church & Dwight, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free.

Why Is Church & Dwight Not Exciting?

Even though the stock has become cheaper, we're swiping left on Church & Dwight for now. Here are three reasons you should be careful with CHD and a stock we'd rather own.

1. Slow Organic Growth Suggests Waning Demand In Core Business

When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.

The demand for Church & Dwight’s products has generally risen over the last two years but lagged behind the broader sector. On average, the company’s organic sales have grown by 3.4% year on year. Church & Dwight Year-On-Year Organic Revenue Growth

2. Projected Revenue Growth Is Slim

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Church & Dwight’s revenue to rise by 3.5%, close to This projection is underwhelming and suggests its newer products will not lead to better top-line performance yet.

3. Shrinking Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Analyzing the trend in its profitability, Church & Dwight’s operating margin decreased by 6.7 percentage points over the last year. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its operating margin for the trailing 12 months was 11.9%.

Church & Dwight Trailing 12-Month Operating Margin (GAAP)

Final Judgment

Church & Dwight isn’t a terrible business, but it doesn’t pass our bar. After the recent drawdown, the stock trades at 26× forward P/E (or $93 per share). Investors with a higher risk tolerance might like the company, but we think the potential downside is too great. We're pretty confident there are superior stocks to buy right now. We’d recommend looking at the most entrenched endpoint security platform on the market.

Stocks We Would Buy Instead of Church & Dwight

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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