New York-based Colgate-Palmolive Company (CL) manufactures and sells consumer products. With a market cap of $87.9 billion, the company’s products include toothpaste, toothbrushes, shampoos, deodorants, bar and liquid soaps, dishwashing liquid, and laundry products, as well as pet nutrition products for cats and dogs.
Companies worth $10 billion or more are generally described as “large-cap stocks.” CL effortlessly fits that bill, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the household & personal products industry.
Colgate-Palmolive strengthens its leadership in the oral care market by driving science-led innovation, resulting in premium product advancements and enhanced brand loyalty. Strategic investments in digital, AI, and eCommerce capabilities have further solidified its position, allowing the company to quickly adapt to consumer needs and market shifts.
CL slipped 2.3% from its 52-week high of $109.30, achieved on Sep. 5. Over the past three months, CL stock has gained 13.8%, outperforming the S&P 500 Index’s ($SPX) 2.5% gains during the same time frame.
In the longer term, shares of CL rose 34% on a YTD basis and climbed 46% over the past 52 weeks, outperforming SPX’s YTD gains of 15.2% and 23.3% returns over the last year.
To confirm the bullish trend, CL has mostly traded above its 50-day and 200-day moving averages since November 2023, with slight fluctuations since.
CL has demonstrated strong performance thanks to consistent product demand and a commitment to sustainability. As a key player in the consumer staples sector, the company benefits from a strong brand image, customer loyalty, and efficient purchasing and distribution capabilities.
On Sep. 9, CL shares closed down marginally after Deutsche Bank Aktiengesellschaft (DB) downgraded the stock to “Hold” from “Buy.”
Moreover, on Jul. 26, CL shares closed up more than 3% after reporting its Q2 results. Its adjusted EPS of $0.91 surpassed Wall Street expectations of $0.87, while the company’s revenue of $5.1 billion beat forecasts of $5 billion.
CL’s top rival, The Procter & Gamble Company (PG) shares have lagged behind the stock, with a 21.3% uptick on a YTD basis and 16.3% gains over the past 52 weeks.
Wall Street analysts are bullish on CL’s prospects. The stock has a consensus “Moderate Buy” rating from the 21 analysts covering it. While CL currently trades above its mean price target of $105.05, the Street-high price target of $122 suggests an upside potential of 14.2%.
On the date of publication, Neha Panjwani 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.
