Will Colgate's Strategic Efforts and Innovation Bolster Growth?

Core Insights - Colgate-Palmolive Company (CL) is effectively utilizing its pricing power to drive growth and alleviate external cost pressures [1][10] - The company is focusing on productivity programs aimed at cost savings and operational efficiency [1][10] Pricing Strategy - Colgate sets competitive prices while emphasizing the value and benefits of its products, catering to various consumer budgets [2] - Key pricing actions, along with the funding-the-growth program, are enhancing efficiency and expanding margins [2] Supply Chain and Innovation - The company is optimizing its global supply chain for agility and resilience, using AI and data analytics to improve portfolio and promotional decisions [3] - Colgate prioritizes innovation as a growth driver, with recent product launches enhancing brand health and household penetration [4] Category Performance - In Oral Care, the relaunch of Colgate Total is gaining market share, particularly in Latin America and Asia [5] - Skincare brands like EltaMD and PCA Skin are also contributing to growth, supported by consumer shifts towards premium products [5] Financial Performance - Colgate's shares have decreased by 12.5% year-to-date, compared to an 8.1% decline in the industry [8] - The forward price-to-earnings ratio for CL is 20.99X, higher than the industry average of 19.09X [9] Earnings Estimates - The Zacks Consensus Estimate indicates year-over-year EPS growth of 2.2% for 2025 and 6.9% for 2026 [11] - Current estimates for EPS are stable, with a consensus of 3.68 for 2025 and 3.93 for 2026 [12]