Headquartered in New York, Colgate-Palmolive Company (CL) is a global leader in consumer products, particularly known for its dominant position in the oral care market. Its flagship brand, Colgate, is the most trusted and widely used toothpaste worldwide. Valued at a market cap of $77.74 billion, the company produces a diverse range of household, healthcare, and personal care products. The company is synonymous with quality and innovation in oral hygiene, personal care, home care, and pet nutrition.
Colgate-Palmolive has underperformed the broader market over the last year. The stock has gained 20.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.6%. But in 2024, CL stock is up 18.9%, surpassing SPX’s 11.3% rise on a YTD basis.
Narrowing the focus, CL’s outperformance looks more pronounced this year compared to Consumer Staples Select Sector SPDR Fund (XLP). PG has comfortably outperformed the exchange-traded fund’s 8% YTD returns.
On Apr. 26, Colgate-Palmolive reported its Q1 earnings, beating Wall Street estimates for both EPS and revenue. The stock gained 1.9% on the day it released earnings and experienced a slight decrease the following day.
For the current fiscal year, ending in December 2024, analysts expect CL’s EPS to grow 9.3% to $3.35 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 18 analysts covering CL stock, the consensus rating is a “Strong Buy.” That’s based on 12 “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”
This configuration is slightly more bullish than three months ago, with 11 suggesting a “Strong Buy.”
On May 15, Argus raised Colgate-Palmolive’s price target from $97 to $107 and maintained a “Buy” rating on the shares. However, Bernstein analyst Callum Elliott maintained a “Hold” rating on Colgate-Palmolive with a price target of $100.
The mean price target of $96.65 represents a 2% premium to CL’s current price levels. The Street-high price target of $105 suggests an upside potential of 10.8%.
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