Colgate-Palmolive Company

🇺🇸New York Stock Exchange
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Colgate-Palmolive Company stock analysis CL overview
Somewhat Bullish +35

Is Wall Street Bullish or Bearish on Colgate-Palmolive Stock?

📊 Colgate-Palmolive (CL) trades at a $68.5 billion market cap and focuses on science-led innovation and AI integration.

📉 Shares of CL declined 4.9% over the past 52 weeks, underperforming the S&P 500 which gained 26.6%.

📈 However, YTD performance shows CL is up 9.3%, significantly outpacing the SPX's 5.2% rise.

⚠️ The stock has also lagged the State Street Consumer Staples Select Sector SPDR Fund (XLP) over the last year.

🏆 Q1 earnings were better than expected, with revenue growing 8.4% year-over-year to $5.3 billion.

💰 Adjusted EPS of $0.97 beat Wall Street consensus estimates of $0.95 for the quarter.

🌏 Management attributed growth to improved sales volumes and strong brand performance in emerging markets.

🤖 Analysts expect CL's EPS to grow 3.8% year-over-year to $3.83 for the current fiscal year ending in December.

📅 CL has topped consensus estimates in each of the last four quarters, demonstrating a promising earnings surprise history.

⭐ Among 21 analysts covering the stock, the consensus rating is "Moderate Buy" with nine suggesting "Strong Buy."

💡 The mean price target is $94.68, implying a 9.7% premium to current levels as of publication.

📈 The Street-high price target stands at $105, indicating up to 21.6% potential upside from current prices.

👤 DBS analyst Andy Sim maintained a "Hold" rating with a specific price target of $95.

Bullish Signals
  • On May 1, Colgate-Palmolive (CL) reported better-than-expected Q1 earnings with revenue increasing 8.4% year-over-year to $5.3 billion.
  • The company topped consensus estimates by $269 million per share, and its adjusted EPS of $0.97 surpassed Wall Street expectations of $0.95.
  • Management attributed strong performance to improved sales volumes and robust brand performance in emerging markets, particularly within the Asia Pacific region.
  • For the current fiscal year ending in December, analysts project CL's EPS will grow 3.8% year over year to reach $3.83.
  • Colgate-Palmolive has topped consensus estimates in each of the last four quarters, highlighting a consistent track record of beating expectations.
  • Of the 21 analysts covering the stock, nine suggest a 'Strong Buy' rating, marking an increase from the previous month and indicating rising bullish sentiment.
  • The Street-high price target of $105 implies a significant 21.6% potential upside from current price levels.
  • Analyst Andy Sim from DBS maintained a 'Hold' rating with a price target of $95, suggesting a 10% potential upside.
Risk Factors
  • Shares of Colgate-Palmolive (CL) have declined 4.9% over the past 52 weeks, significantly lagging behind the broader S&P 500 Index which gained 26.6% in the same period.
  • The stock has underperformed the State Street Consumer Staples Select Sector SPDR Fund (XLP), dropping relative to its peer group's 2.4% rise over the past year.
  • Among the 21 analysts covering the stock, one analyst holds a 'Strong Sell' rating, and seven maintain a neutral 'Hold' position rather than a bullish stance.
  • For the current fiscal year ending in December, analysts only project an EPS growth of 3.8% year over year to $3.83, suggesting limited upside potential compared to historical performance.
Full Analysis
Colgate-Palmolive (CL) is currently trading at a market capitalization of $68.5 billion and emphasizes its strategy involving science-led innovation, digital transformation, and artificial intelligence integration. Over the past 52 weeks, the stock has underperformed the broader S&P 500, declining by 4.9% compared to the index's gain of 26.6%, though it has outpaced the State Street Consumer Staples Select Sector SPDR Fund (XLP), which rose 2.4% in the same period. Conversely, year-to-date performance shows CL up 9.3%, surpassing XLP’s 7.5% rise and the S&P 500’s 5.2% gain. The company recently released better-than-expected Q1 earnings on May 1, with revenue increasing 8.4% year-over-year to $5.3 billion, exceeding consensus estimates by 2.3%. This growth was attributed to improved sales volumes and strong brand performance in emerging markets, particularly the Asia Pacific region. Adjusted EPS reached $0.97, beating Wall Street expectations of $0.95. The company has topped consensus estimates for four consecutive quarters, with analysts projecting current fiscal year EPS to grow 3.8% to $3.83 by December. Analyst sentiment is moderately bullish, with a consensus "Moderate Buy" rating derived from ten Strong Buy ratings, three Moderate Buy, seven Hold, and one Strong Sell. The configuration has improved since last month, with nine analysts now suggesting a Strong Buy. Price targets show potential upside, with the mean target at $94.68 indicating 9.7% premium to current levels, while the Street-high target is $105, implying 21.6% upside. DBS analyst Andy Sim maintained a Hold rating on May 3 with a $95 price target, suggesting a 10% potential gain from current prices.