Colgate-Palmolive Company

(New York Stock Exchange)
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Somewhat Bearish -25

Colgate-Palmolive stock falls as S&P 100 reshuffle drops the consumer staple

AI-generated analysis

πŸ“‰ S&P Dow Jones Indices confirmed Colgate-Palmolive will be removed from the S&P 100 index prior to the opening of US markets on September 21, 2026.

πŸ’° The company trades at a price-to-earnings ratio of 35.23 times trailing twelve-month earnings, which is above its five-year median of 31.26 times.

πŸ“Š Colgate-Palmolive previously represented about 0.16 percent of assets in the iShares S&P 100 ETF before the index rebalancing.

πŸ’΅ As of September 4, 2026, Colgate-Palmolive's share price stood at USD 88.77 following the stock's decline on reshuffle headlines.

πŸ›‘οΈ The company generates significant revenue from its global oral care franchise built around the Colgate brand, providing resilient cash flows.

πŸ€– The index reshuffle highlights how benchmarks are shifting away from consumer staples toward high-growth AI infrastructure plays like Dell Technologies and Palo Alto Networks.

Bullish Signals
  • Colgate-Palmolive trades at a modest single-digit percentage undervaluation relative to its proprietary GF Value estimate despite trading above its historical P/E median.
  • The company's global oral care franchise built around the Colgate brand provides resilient cash flows due to high household penetration and repeat purchase behavior.
Risk Factors
  • S&P Dow Jones Indices confirmed Colgate-Palmolive will be removed from the S&P 100 index, likely triggering mechanical selling by passive index and ETF products.
  • The company's price-to-earnings ratio of 35.23 times trailing twelve-month earnings indicates it is trading at a premium versus its own historical earnings multiple.
Full Analysis
Colgate-Palmolive (CL) stock declined following confirmation by S&P Dow Jones Indices that the consumer products group will be removed from the S&P 100 index ahead of a quarterly rebalancing scheduled for September 21, 2026. The reshuffle reflects a broader market shift where mega-cap benchmarks are tilting away from traditional consumer staples toward high-growth AI infrastructure plays, causing CL to slip out of the very top market-cap bracket represented by the index. Despite the index removal, Colgate-Palmolive remains a relatively expensive defensive stock with a price-to-earnings ratio of 35.23 times trailing twelve-month earnings, compared to a five-year median of 31.26 times. While the company trades at a premium versus its historical multiple, GuruFocus data suggests a modest single-digit percentage undervaluation relative to its proprietary GF Value estimate, indicating mixed valuation signals for investors. The removal from the S&P 100 will likely trigger mechanical selling by passive index and ETF products, such as the iShares S&P 100 ETF where CL previously represented about 0.16 percent of fund assets. However, the impact is constrained by the stock's already low weight in the fund, with Colgate-Palmolive and Nike together accounting for only 0.27 percent before their removal. Colgate-Palmolive continues to generate resilient cash flows from its global oral care franchise, which includes toothpaste, toothbrushes, and mouthwash products built around the Colgate brand. As of September 4, 2026, the share price stood at USD 88.77, placing it modestly lower than technology peers that have posted significantly larger year-to-date gains.