This Consumer-Products Giant's Stock Is a Wall Street Top Pick for 2026

Core Viewpoint - Morgan Stanley analysts have identified Colgate-Palmolive as their top pick in the Household & Personal Care sector, anticipating a recovery in the company's sales growth in 2026 after a disappointing performance in 2025 [2][8] Sales Growth Expectations - Analysts expect Colgate-Palmolive's sales growth to recover in 2026, projecting 3% organic sales growth and 6% earnings per share growth, despite a conservative outlook for the fourth quarter [5][6] - The company experienced a low point in organic sales growth at 0.4% in its last quarterly results, but is expected to outperform competitors in the coming quarters [5] Market Context - The consumer packaged goods sector faced "category weakness" in 2025, which impacted Colgate-Palmolive's performance, alongside challenging comparisons from a strong 2024 [3][4] - Colgate-Palmolive shares fell by double-digit percentages in 2025, but analysts predict a 13% increase in share price this year, aligning with Wall Street's average forecast [4][8] Competitive Position - Factors contributing to the expected recovery include easier comparisons from 2025, growth in developing markets, and a projected recovery in market share within the oral care segment [6][7] - Analysts believe that while individual factors may not be significant, collectively they create a clear path for Colgate-Palmolive to reaccelerate organic sales growth above its peers [7]