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Barchart
Barchart
Anushka Mukherjee

Is Colgate-Palmolive Stock Underperforming the S&P 500?

Colgate-Palmolive Company (CL) is a major global consumer products company based in New York City. It manufactures and markets oral care, personal care, home care, and pet nutrition products across more than 200 countries. 

The company operates numerous manufacturing facilities worldwide and emphasizes innovation, efficiency, and sustainable practices. It has a market capitalization of $63.82 billion, which classifies it as a “large-cap” stock.

 

Its stock had reached a 52-week high of $100.18 back in March, but is down about 21% from that level. Reflecting bearish investor sentiments, Colgate’s stock has declined by 7.9% over the past three months. On the other hand, the broader S&P 500 Index ($SPX) has gained 4.1% over the same period.

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Over the longer term, this underperformance persists. Over the past 52 weeks, Colgate’s stock has been down 16.6%, and over the past six months, it has been down 14.5%. On the other hand, the S&P 500 gained 11.2% and 13.9% over the same periods, respectively. The stock has been trading below its 200-day moving average since March and has been currently hovering near its 50-day moving average. 

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On Oct. 31, Colgate reported its third-quarter results for fiscal 2025. The company’s net sales increased 2% year-over-year (YOY) to $5.13 billion, which aligned with Wall Street analysts’ consensus estimate. Its organic sales increased marginally, but were weighed down by lower private-label pet sales following the company’s exit from that non-strategic business. Colgate’s EPS increased 1% YOY to $0.91, topping the $0.89 Street estimate. 

The company is focusing on reaccelerating its growth despite the uncertainty in global markets. Colgate’s stock dropped 2.7% intraday on Nov. 3, seemingly due to the company’s slow growth. 

We compare Colgate’s performance with that of another personal care products seller, Kimberly-Clark Corporation (KMB), which has dropped 24.1% over the past 52 weeks and 25.8% over the past six months. Therefore, Colgate is the clear outperformer here.

Wall Street analysts are moderately bullish on Colgate’s stock. The stock has a consensus rating of “Moderate Buy” from the 21 analysts covering it. The mean price target of $86.71 indicates a 9.5% upside compared to current levels. Moreover, the Street-high price target of $100 indicates a 26.3% upside. 

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