Colgate-Palmolive (CL) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Colgate-Palmolive (CL) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks Consensus Estimate for Colgate-Palmolive for the fiscal year ending December 2024 is projected at $3.57 per share, reflecting a 10.5% increase from the previous year's reported figure [5]. - Over the past three months, the Zacks Consensus Estimate for the company has risen by 1.1%, indicating a trend of increasing earnings estimates [5]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [3][4]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [3]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [4]. - The upgrade of Colgate-Palmolive to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [7].