Headquartered in New York, Colgate-Palmolive Company (CL) is a global leader in consumer products, renowned for its dominant position in the oral care market. Its flagship brand, Colgate, is the most trusted and widely used toothpaste worldwide. With a market cap of $84.2 billion, the company produces a diverse range of household, healthcare, and personal care products.
Shares of Colgate-Palmolive have outperformed the broader market over the last year. CL stock has gained 33.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.1%. In 2024 alone, CL is up 28.5%, surpassing SPX’s 9% rise on a YTD basis.
Narrowing the scope, CL’s outperformance looks more pronounced when compared to Consumer Staples Select Sector SPDR Fund (XLP), which has surged 4.1% over the past 52 weeks. CL has comfortably surpassed the ETF’s 8.7% returns on a YTD basis.
Colgate-Palmolive's impressive stock market performance over the past year reflects its steady product demand and dedication to eco-friendly initiatives. As a major player in the consumer staples industry, the company enjoys a robust brand reputation, customer trust, and significant leverage in purchasing and distribution.
Moreover, CL stock edged up 3% on Jul. 26 after its Q2 earnings report sailed past both bottom-line and top-line expectations. The company also raised its annual profit forecast to the range of 8% to 11%, up from mid- to high-single-digits, and projected full-year organic sales growth to range between 6% and 8%, up from 5% to 7% range.
Despite a price increase in Q2, Colgate-Palmolive saw a 4.7% rise in organic volumes, recovering from a 3% decline last year, reflecting strong brand loyalty and effective pricing strategies.
For the current fiscal year, ending in December 2024, analysts expect Colgate-Palmolive’s EPS to grow 10.5% year over year to $3.57 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 21 analysts covering Colgate-Palmolive stock, the overall consensus rating is a “Moderate Buy,” a step down from a “Strong Buy” rating a month before. That’s based on 13 “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”
This configuration is slightly more bullish than two months ago, with 12 analysts suggesting a “Strong Buy.”
On July 29, analysts at Morgan Stanley (MS) raised Colgate-Palmolive's price target to $111 from $103 while maintaining an “Overweight” rating. The firm was impressed by CL’s strong Q2 results, noting the high-quality and balanced performance, which suggests the company will continue to outperform peers in organic sales growth.
The mean price target of $104.37 represents a 1.9% premium to CL’s current price levels. The Street-high price target of $115 suggests an upside potential of 12.3%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
