Core Insights - The article compares Grocery Outlet Holding Corp. (GO) and Colgate-Palmolive (CL) to determine which stock is more attractive to value investors [1] Valuation Metrics - Grocery Outlet Holding Corp. has a Zacks Rank of 2 (Buy), while Colgate-Palmolive has a Zacks Rank of 3 (Hold), indicating that GO has shown more impressive earnings estimate revision activity [3] - GO has a forward P/E ratio of 18.61, compared to CL's forward P/E of 25.16, suggesting that GO is more attractively valued [5] - The PEG ratio for GO is 3.76, while CL's PEG ratio is 4.88, indicating that GO's expected EPS growth rate is more favorable [5] - GO's P/B ratio is 1.14, significantly lower than CL's P/B ratio of 101.45, further supporting GO's valuation attractiveness [6] Conclusion - Given the stronger estimate revision activity and more attractive valuation metrics, value investors are likely to view Grocery Outlet Holding Corp. as the superior investment option compared to Colgate-Palmolive [7]

Colgate-Palmolive Company (CL) has been a renowned player in the consumer products space. The company has created a niche in consumers’ everyday essentials with its oral care, household, healthcare and personal care products. Its innovation strategy has also been successful.Hence, the company has maintained its strong leadership in the toothpaste and toothbrush markets. In the most recent earnings release, management highlighted that the company maintained its leadership in the toothpaste market, holding a ...

Colgate-Palmolive Company (CL) has experienced a 7.3% decrease in its share price over the past month, a notable drop that was amplified following the release of its first-quarter fiscal 2025 results.While the company, a prominent player in the consumer staples space, has a strong brand portfolio and extensive global reach, recent headwinds have weighed on investor sentiment and highlighted vulnerabilities in its business model. The company’s share performance also lagged the broader industry’s decline of 4 ...

Colgate-Palmolive Company (NYSE:CL) Goldman Sachs Global Staples Forum May 13, 2025 8:15 AM ET Company Participants John Hazlin - President of Hill's Pet Nutrition John Faucher - Chief IR and EVP, M&A Conference Call Participants Bonnie Herzog - Goldman Sachs Bonnie Herzog So with that, we're excited to kick off this year's conference with Colgate, and it is my pleasure to welcome Colgate's President of Hill's Pet Nutrition, John Hazlin; and Chief IR and EVP, M&A, John Faucher to join us on stage. So John H ...

Core Viewpoint - The article compares Grocery Outlet Holding Corp. (GO) and Colgate-Palmolive (CL) to determine which stock is a better option for value investors, highlighting that GO has a stronger earnings outlook and more attractive valuation metrics than CL [1][3]. Valuation Metrics - GO has a forward P/E ratio of 19.22, while CL has a forward P/E of 24.44, indicating that GO is currently undervalued compared to CL [5]. - The PEG ratio for GO is 3.88, whereas CL's PEG ratio is 4.74, suggesting that GO offers better value when considering expected earnings growth [5]. - GO's P/B ratio is 1.18, significantly lower than CL's P/B of 98.56, further supporting the notion that GO is undervalued [6]. Investment Ratings - GO holds a Zacks Rank of 2 (Buy), indicating a favorable investment outlook, while CL has a Zacks Rank of 3 (Hold), suggesting a more cautious approach [3]. - The Value grade for GO is B, while CL has a Value grade of D, reflecting GO's stronger valuation metrics [6][7].

Colgate-Palmolive Company (CL) Conference May 13, 2025 08:15 AM ET Speaker0 All right. Good morning, everyone. Thank you all for joining us today. I'm Bonnie Herzog, Senior Consumer Staples Analyst at Goldman Sachs. And Leah Jordan, our Packaged Food Analyst, and myself are thrilled to welcome you all to our Annual Global Staples Forum. So our expectations for '25 have evolved meaningfully compared to how we were thinking about this year when we look back December of last year. What was expected to be a ret ...

Financial Data and Key Metrics Changes - Colgate-Palmolive achieved record net sales in 2024, surpassing $20 billion for the first time, with a growth of 3.3% following an 8.3% increase in 2023 [32] - Organic sales growth was 7.4% in 2024, continuing a trend of six consecutive years of organic sales growth, aligning with the long-term target range of 3% to 5% [32] - The company reported a double-digit growth in base business earnings per share, building on high single-digit growth in 2023 [34] - Free cash flow increased by 17% in 2024, driven by strong net income and disciplined working capital management [34] Business Line Data and Key Metrics Changes - Organic sales growth was achieved across all six divisions and four categories: oral care, pet nutrition, personal care, and home care [32] - The company increased its advertising spending by 15% in 2024, following a 19% increase in 2023, while also improving the advertising to sales ratio [33] Market Data and Key Metrics Changes - Colgate gained global value share in the toothpaste business for the third consecutive year and also in the manual toothbrush and pet nutrition markets in the US [35] - The Colgate brand is present in nearly 60% of the world's homes, making it the most penetrated brand globally [35] Company Strategy and Development Direction - The company is focused on driving innovation and delivering category-defining solutions to consumers, with significant investments in product development and marketing [31][36] - Colgate is leveraging AI and digital capabilities to enhance marketing, product innovation, and operational efficiency [40][41] - The company aims to maintain flexibility in its leadership structure to adapt to changing market conditions [17] Management's Comments on Operating Environment and Future Outlook - The management acknowledged challenges in 2025 due to market volatility and economic uncertainty but expressed confidence in the company's long-term growth strategy [44] - The company remains committed to investing in brands and capabilities while navigating short-term challenges [44] Other Important Information - The company has increased its quarterly dividend rate for the 62nd consecutive year, with a further increase announced for 2025 [34] - The board recommended against two stockholder proposals regarding an independent board chairman and plastic packaging policies, citing existing governance structures and commitments [17][25] Q&A Session Summary Question: What is Colgate's investment strategy for AI? - Colgate has launched an internal AI hub for over 5,000 employees, focusing on marketing and product innovation to enhance consumer engagement and accelerate product development [46][47] Question: Is democracy good for business? - The company believes predictable environments that encourage long-term strategy and performance are beneficial for business [49] Question: Why does the board need 10 directors? - The board composition is designed to provide a range of skills and experiences, which is essential for guiding the company effectively [50][52] Question: Will in-person stockholder meetings be restarted? - The company finds virtual meetings allow greater participation and efficiency, with no decision made yet on future meeting formats [53][54] Question: Can you provide examples of product innovation? - Examples include the new Colgate Total toothpaste with enhanced preventive properties and EltaMD skin recovery sunscreen that reduces redness while providing UV protection [55][56] Question: How is inflation affecting the business? - Inflation is currently slightly below last year's levels, and the company has built a flexible supply chain to mitigate tariff impacts [57][58] Question: Will dividend increases be larger in the future? - The decision on dividend increases is made by the board based on various factors, with the company's health remaining strong [59]

Core Insights - The article compares Procter & Gamble (PG) and Colgate-Palmolive (CL), highlighting their market positions, financial performance, and strategic priorities within the consumer-packaged goods (CPG) industry [1][2]. Procter & Gamble (PG) - PG operates in over 180 countries with a market capitalization close to $400 billion, offering a diverse product lineup including Tide, Pampers, Gillette, and Olay, which provides a competitive advantage [3]. - In Q3 fiscal 2025, PG reported earnings per share (EPS) of $1.54, meeting analyst expectations, while maintaining or growing market share in seven of its ten core categories [4]. - The company focuses on premiumization and innovation, launching high-performance products and investing in advertising rather than discount promotions, which supports long-term brand strength [5]. - PG anticipates approximately $200 million in after-tax headwinds from commodity costs and foreign exchange in fiscal 2025, alongside projected tariff-related costs of $1-$1.5 billion annually [6]. - The company plans to return $16-17 billion to shareholders through dividends and buybacks, demonstrating a commitment to long-term value creation [7]. Colgate-Palmolive (CL) - CL is a leader in oral care with a 41% share of the global toothpaste market and a 32% share in manual toothbrushes, while also expanding into pet nutrition and skincare [9][10]. - In Q1 2025, CL reported sales exceeding $4.91 billion, beating estimates despite a 3% year-over-year decline, with an EPS of 91 cents also surpassing expectations [11]. - The company expects $200 million in incremental tariff impacts in 2025 but is mitigating these through supply-chain flexibility and productivity gains, having invested $2 billion in U.S. supply-chain upgrades over the past five years [12]. - CL maintains a focus on advertising ROI and AI-driven analytics to optimize spending while continuing to innovate and premiumize its offerings [13]. - The company is positioned to deliver sustainable shareholder value through its strong balance sheet and disciplined execution, despite short-term pressures [14][26]. Financial Estimates - For fiscal 2025, PG's sales and EPS are expected to grow by 0.4% and 3%, respectively, with EPS estimates down by 1.2% in the past week [15]. - CL's sales and EPS estimates suggest year-over-year growth of 0.6% and 1.4%, with EPS estimates down by 0.5% recently [18]. - Both companies have experienced downward estimate revisions, but CL's revisions are less severe compared to PG [20]. Price Performance & Valuation - Year-to-date, PG shares have declined by 3.1%, while CL stock has gained 1.4% [21]. - PG is trading at a forward P/E multiple of 23.06X, below its five-year median of 23.65X, indicating a potentially undervalued position [23]. - CL's forward P/E multiple is at 24.47X, above its five-year median of 24.1X, reflecting its solid fundamentals and growth strategy [24]. Conclusion - PG's extensive global presence and diversified brand portfolio provide a foundation for long-term revenue stability, though it faces geopolitical and market-specific challenges [25]. - CL's strong brand equity and adaptability position it as an attractive investment option, particularly with lower tariff risks and solid fundamentals [27].

Core Insights - Colgate-Palmolive Company's shares have increased by 7.1% over the past three months, outperforming the Zacks Consumer Products - Staples industry's growth of 1% and the broader Consumer Staples sector's increase of 6.6% [1] - The company maintains a strong position in the consumer products market, holding a 40.9% global market share in toothpaste and a 31.9% share in manual toothbrushes year to date [2] Financial Performance - In the first quarter of 2025, Colgate reported earnings that exceeded the Zacks Consensus Estimate, with year-over-year earnings improvement despite a decline in sales [3] - Organic sales grew by 1.4% in the first quarter, driven by a 1.5% increase in pricing, supported by aggressive pricing strategies [6] - Management projects net sales to grow in low single digits, with organic sales expected to increase by 2-4% year over year in 2025 [13] Strategic Initiatives - The company is focused on innovation and premiumization of its product offerings, including the re-launch of Colgate Total and the Hill's Science Diet with ActivBiome technology [8] - Colgate has invested approximately $2 billion in its supply chain in the United States over the last five years to enhance its operational capabilities [9] - Management is confident in its strategic initiatives to address challenges such as tariffs and inflation, aiming for consistent earnings per share growth [12] Market Challenges - The company faces macroeconomic challenges, including inflationary pressures and tariff concerns, which may impact performance [10] - Sales for 2025 are expected to be negatively affected by unfavorable currency exchange rates [11]

Core Insights - Colgate-Palmolive Co reported better-than-expected first-quarter FY25 earnings, with sales of $4.91 billion, a 3% year-over-year decline, surpassing analyst expectations of $4.86 billion [1] - The non-GAAP EPS of $0.91 exceeded the consensus estimate of $0.86 [1] Financial Performance - For FY25, Colgate anticipates net sales growth in the low single digits, factoring in a negative impact from foreign exchange in the low single digits [3] - The company projects organic sales growth to be between 2% to 4% [3] - Following the earnings announcement, Colgate shares fell by 3%, trading at $91.08 [3] Analyst Ratings and Price Targets - JP Morgan analyst Andrea Teixeira maintained an Overweight rating on Colgate-Palmolive and raised the price target from $95 to $103 [7] - Citigroup analyst Filippo Falorni maintained a Buy rating and increased the price target from $103 to $108 [7] Strategic Outlook - The CEO, Noel Wallace, acknowledged challenges due to uncertainty and volatility in global markets, including tariff impacts, but expressed confidence in the company's strategy to meet revised 2025 financial targets [2]