Established in 1806 and based in New York, Colgate-Palmolive Company (CL) is a global leader in oral care hygiene, renowned for producing and distributing an extensive array of household, healthcare, and personal care products. With a market cap of $79.5 billion, the company operates through two segments: Oral, Personal, and Home Care, and Pet Nutrition, which includes products for dogs and cats manufactured by its subsidiary, Hill's Pet Nutrition.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Colgate-Palmolive fits right into that category. With a market cap reflecting its size, stability, and influence in the consumer defensive sector, this century-old consumer product giant thrives on innovation, market expansion, and organic products.
The consumer product company is enjoying solid market momentum. Its shares touched their 52-week high of $97.41 in the last trading session. Also, shares of Colgate-Palmolive are up 9.7% over the past three months, outperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 2.2% surge over the same time frame.
Over the longer term, CL stock is up 21.6% on a YTD basis, outperforming XLP’s 7.8% gains in 2024. Moreover, Colgate-Palmolive shares have returned 24.9% over the past 52 weeks, higher than XLP’s 5.5% returns.
Additionally, the stock has been on an uptrend recently, trading above its 200-day moving average since early November and over its 50-day moving average since late October, despite some fluctuations.
Colgate-Palmolive's stellar stock market performance over the past year is a testament to its consistent product demand and commitment to eco-conscious initiatives. As one of the largest consumer staples companies, it also benefits from a strong brand, customer trust, and leverage in purchasing and distribution.
Moreover, CL stock rose 1.9% following the release of its Q1 earnings report on April 26. It reported net sales of $5.1 billion, up 6.2% year over year, surpassing expectations by 2.1%. Its adjusted EPS of $0.86 exceeded Wall Street forecasts by 4.9%. The company also raised its FY2024 net sales growth guidance to 2% to 5%, up from the previous 1% to 4%.
To emphasize the stock’s impressive price performance, it is worth noting that Colgate-Palmolive’s top rival, The Procter & Gamble Company (PG), continues to underperform CL. PG stock has surged 13.2% over the past 52 weeks and returned 14.4% on a YTD basis, lower than CL’s returns over the same time frames.
Given Colgate-Palmolive’s robust price performance, analysts are bullish about its future. The stock has a consensus rating of “Strong Buy” from the 18 analysts covering it, and the mean price target of $97.29 reflects a marginal upside potential to current price levels.
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.
