Performance Overview - The Dividend Kings experienced a decline of 1.58% in September, underperforming the SPDR S&P 500 ETF (SPY) by 4.47% [1] Current Month Performance - The performance in the current month is not showing improvement compared to previous results [1]

Core Insights - Colgate-Palmolive Company (CL) is anticipated to report a decline in earnings for Q3 2025, with revenues expected to reach $5.1 billion, reflecting a 2% increase year-over-year [1][9] Financial Performance - The consensus estimate for CL's earnings is set at 89 cents per share, indicating a 2.2% decline compared to the previous year [2][9] - In the last reported quarter, CL exceeded the consensus earnings estimate by 3.4%, with an average earnings surprise of 3.7% over the last four quarters [2] Earnings Prediction Model - The current model indicates a negative Earnings ESP of -0.61% for Colgate, with a Zacks Rank of 4 (Sell), suggesting a lower likelihood of an earnings beat this season [3] Business Momentum and Growth Drivers - Colgate's Q3 performance is expected to benefit from strong business momentum, driven by pricing strategies, funding-the-growth initiatives, and productivity improvements [4][9] - The company's focus on science-based innovation, such as the relaunch of Colgate Total and other product lines, is supporting category growth and brand penetration [5] Sales and Margin Expectations - Projected sales growth for Q3 2025 is 2.9%, with organic sales growth of 2.1%. Volume is expected to decline by 0.1%, offset by pricing gains of 2.2% [6] - Gross margin is predicted to expand by 60 basis points to 60.7% for Q3 2025, supported by strong pricing and revenue growth management initiatives [7] Regional Performance Challenges - Colgate's performance may face challenges from inflationary pressures, foreign currency fluctuations, and weak performance in key regions, particularly in Latin America [8][10] Market Performance and Valuation - Colgate's shares have decreased by 10.4% over the past three months, compared to a 5.1% decline in the industry [11] - The company trades at a forward P/E multiple of 20.18X, which is above the industry average of 19.05X and below the S&P 500's average of 23.69X, indicating a relatively high valuation [11]

Core Viewpoint - The article presents a contrarian viewpoint on Colgate-Palmolive (NYSE: CL), marking the first "sell" rating since November 2021, indicating a shift in sentiment towards the stock [1]. Group 1: Investment Strategy - The focus is on identifying undervalued stocks with a balance of risk and reward, emphasizing the importance of understanding ownership to limit risks while aiming for decent to high upside [1]. - The belief is that the best investment ideas are often the simplest, and a contrarian approach can yield better results [1].

Colgate-Palmolive Company (NYSE: CL ) is one of the highest-quality and truly global large-scale consumer staple businesses, and when the stock falls by nearly 20% over a period of just one year, it is time to examine the causes for that and see ifVladimir Dimitrov, CFA is a former strategy consultant within the field of brand and intangible assets valuation. During his career in the City of London he has been working with some of the largest global brands within the technology, telecom and banking sectors. ...

Core Viewpoint - Colgate-Palmolive Company will host a live webcast for its 2025 third quarter earnings conference call on October 31, 2025, at 8:30 a.m. ET [1] Company Information - The conference call will be led by Chairman, President and CEO Noel Wallace, CFO Stan Sutula, and Chief Investor Relations Officer and EVP, M&A John Faucher [1] - Investors can access the earnings press release, prepared materials, and the live audio webcast on Colgate's official website [1]

Core Viewpoint - The consumer staples sector, including companies like Procter & Gamble, Colgate-Palmolive, and Kimberly-Clark, is facing challenges due to weak consumer confidence and spending, but these companies remain reliable for long-term investors seeking passive income through dividends [1][2][5][16]. Group 1: Industry Overview - The consumer staples sector is roughly flat year-to-date, with Walmart's performance helping to mitigate losses [1]. - Procter & Gamble, Colgate-Palmolive, and Kimberly-Clark are major players in household and personal care products, with P&G leading in various categories [3][4]. - The current operating environment is challenging due to high raw material costs, geopolitical issues, and consumer uncertainty [10]. Group 2: Consumer Behavior and Market Dynamics - Weak consumer confidence is leading to cautious spending, with consumers opting for smaller packs or promotions to manage costs [7][9]. - There is a notable disconnect between stock market gains and consumer spending, with record AI spending benefiting corporations rather than consumers [8]. - Companies are adapting by offering larger package sizes or multipacks to provide better value, even if it results in lower margins [11]. Group 3: Financial Performance and Valuation - P&G and Colgate-Palmolive have seen less than 25% sales growth over the last decade, while Kimberly-Clark's sales are roughly flat [12]. - Operating margins for P&G and Colgate-Palmolive are high at 24.2% and 22%, respectively, but face pressure from inflation [13]. - All three companies are trading at steep discounts to their historical average valuations, making them attractive for long-term investors [18]. Group 4: Dividend Reliability - All three companies are recognized as Dividend Kings, having raised dividends for over 50 consecutive years, with current yields of 4.2% for Kimberly-Clark, 2.8% for P&G, and 2.7% for Colgate-Palmolive [17]. - These companies can support their dividends with earnings and free cash flow, even during periods of slower growth [20][22]. - Long-term investors are encouraged to focus on fundamentals and the potential for consistent passive income from these reliable dividend stocks [16][23].

Core Insights - Ken Fisher's investment firm, Fisher Investments, manages over $362 billion in assets and focuses on resilient consumer stocks for long-term growth [1] - The consumer staples sector has underperformed the broader market due to high interest rates and inflation, with the S&P 500 Consumer Staples Index returning approximately 2.6% this year compared to over 12.5% for the S&P 500 Index [2] - The consumer discretionary sector has shown more volatility but outperformed the S&P 500 Index over the past year with a return of around 17.0% [2] - Recent mixed market sentiments are influenced by strong corporate earnings and rising U.S.-China trade tensions, with gold prices rising past $4,200 per ounce [3] Consumer Staples Sector - Companies in the consumer staples sector are known for resilience, consistent cash flows, and pricing power, but have faced challenges due to inflation and high interest rates [2] - The sector has underperformed over the last 1, 3, and 5 years, leading to cautious outlooks from analysts [2] Consumer Discretionary Sector - The consumer discretionary sector has shown better long-term performance despite recent underperformance year-to-date, indicating potential for recovery [2] - The sector's volatility may present opportunities for high-quality consumer stocks as trade uncertainties ease [3] Ken Fisher's Stock Picks - The list of Ken Fisher's top 10 consumer stock picks is based on strong brand equity, pricing power, and consistent demand resilience [7] - The performance of these stocks from the end of Q2 2025 to October 15 has been tracked to provide insights into their potential upside [8] Individual Stock Analysis - **Target Corporation (NYSE:TGT)**: - Upside potential of 11.67% with a share price return of -12.46% from July 1 to October 15 [10] - Operational challenges have affected brand image and consumer engagement, necessitating significant investment to address these issues [11][12] - **Colgate-Palmolive Company (NYSE:CL)**: - Upside potential of 16.89% with a share price return of -15.66% [14] - Analysts have reduced price targets due to short-term pressures, but the company's diversified portfolio supports long-term growth [15][16] - **Starbucks Corporation (NASDAQ:SBUX)**: - Upside potential of 16.91% with a share price return of -12.71% [17] - The company has approved a dividend increase and is undergoing a restructuring plan to enhance operational efficiency despite recent cost pressures [18][19]

Core Viewpoint - JPMorgan has lowered the price target for Colgate-Palmolive Company from $95 to $88 while maintaining an Overweight rating ahead of the company's Q3 earnings release, reflecting concerns over its outlook due to a nearly 14% decline in stock price [1][2]. Group 1: Earnings Outlook - Colgate-Palmolive is set to report its Q3 results on October 31, with expectations of organic sales growth now projected at the lower end of the 2% to 4% range due to weaker category trends [2]. - Despite maintaining its overall full-year 2025 guidance for revenue and earnings, the company faces challenges across product categories [2]. Group 2: Financial Adjustments - Favorable foreign exchange conditions have allowed the company to reaffirm its outlook for low-single-digit net sales growth [3]. - Tariff-related costs have improved by $125 million, now expected to total around $75 million, although these savings are offset by increased expenses for raw and packaging materials [3]. Group 3: Dividend Stability - Colgate-Palmolive remains a reliable income stock, having grown its dividends for 62 consecutive years [4]. - The company offers a quarterly dividend of $0.52 per share, resulting in a dividend yield of 2.66% as of October 16 [4].

Core Viewpoint - Grocery Outlet Holding Corp. (GO) is currently viewed as a more attractive investment option compared to Colgate-Palmolive (CL) based on valuation metrics and earnings estimate revisions [3][7]. Valuation Metrics - GO has a forward P/E ratio of 19.75, while CL has a forward P/E of 21.36, indicating that GO is relatively cheaper [5]. - The PEG ratio for GO is 2.72, compared to CL's PEG ratio of 4.60, suggesting that GO offers better value when considering expected earnings growth [5]. - GO's P/B ratio stands at 1.28, significantly lower than CL's P/B of 60.23, further highlighting GO's undervaluation [6]. Earnings Estimate Revisions - GO has experienced stronger estimate revision activity, which is a positive indicator for its earnings outlook [3][7]. - The Zacks Rank for GO is 2 (Buy), while CL holds a Zacks Rank of 4 (Sell), reflecting a more favorable sentiment towards GO [3]. Value Grades - GO has been assigned a Value grade of B, whereas CL has a Value grade of D, indicating that GO is perceived as a better value investment [6].

Core Insights - The launch of OpenAI's ChatGPT has significantly transformed advertising, media, and various sectors of the global economy, with companies increasingly adopting AI in their marketing strategies [1][2] - Hello Products, a personal care brand under Colgate-Palmolive, views AI as an "amplifier" for its marketing efforts, enhancing speed, precision, and strategic focus [1][2] AI Integration in Marketing - Hello Products utilizes a proprietary AI tool to analyze data from numerous sources, identifying unmet consumer needs and generating insights that may otherwise be overlooked [3] - The integration of AI allows marketing teams to focus on strategic thinking rather than just emotional aspects of consumer engagement [4] Collaboration Between Creative and Data Agencies - Agencies like Interpublic Group's FCB are leveraging AI to enhance the creative process, enabling faster delivery of campaign ideas to clients [4][5] - The collaboration between creative and technology teams has become more integrated, fostering a closer working relationship that benefits both sides [6]