Fundsmith Equity Fund Overview - Fundsmith Equity Fund's T Class Accumulation shares returned 0.8% in 2025, underperforming the MSCI World Index which returned 12.8% [1] - Since inception, the fund has outperformed the index by 1.7% per annum [1] - Underperformance in 2025 attributed to index concentration, growth of assets in Index Funds, and dollar weakness [1] Church & Dwight Co., Inc. Analysis - Church & Dwight Co., Inc. (NYSE:CHD) stock closed at $86.66 on January 12, 2026, with a one-month return of 2.50% and a 52-week loss of 17.69% [2] - The company has a market capitalization of $21.11 billion [2] - Fundsmith noted that Church & Dwight is affected by mixed consumer fortunes in the US, which is impacting demand for its discount products [3] - In Q3 2025, Church & Dwight reported a revenue increase of 5% and organic sales growth of 3.4% [3] - The stock is not among the 30 most popular stocks among hedge funds, with 44 hedge fund portfolios holding it at the end of Q3 2025, up from 39 in the previous quarter [3] - Fundsmith believes certain AI stocks present greater upside potential compared to Church & Dwight [3]

Group 1 - Colgate-Palmolive Company (NYSE:CL) is recognized as one of the "Dividend Kings," having increased its dividends for 63 consecutive years, which provides stability in an uncertain economy [3] - The company is focusing on everyday essentials, aiming to protect its market position through increased investment in research and innovation, enhanced marketing for core brands, and quicker responses to changing consumer preferences [3] - JPMorgan has raised its price target for Colgate-Palmolive to $88 from $87, maintaining an Overweight rating, with expectations of improved results as headwinds from 2025 are expected to ease [2] Group 2 - Colgate-Palmolive is managing higher raw material costs by implementing price increases, tighter revenue management, and improving operational efficiency [4] - The company has potential upside from its pet nutrition business, Hill's, which could benefit from the sustained demand for pet products following a surge in pet adoption during the pandemic [4] - The outlook for beverages, household, and personal care sectors remains challenging, but there is optimism for consumption and margins due to lower tariffs and favorable currency movements for multinational companies [2]

Core Insights - Church & Dwight Co., Inc. (CHD) is a significant player in the household and personal care products industry, with a market capitalization of $20.3 billion [1][2] Financial Performance - CHD stock reached an all-time high of $116.46 on March 10 but is currently trading 29.9% below that peak [3] - Over the past three months, CHD stock has declined by 13.7%, underperforming the Consumer Staples Select Sector SPDR Fund (XLP), which dipped by 3.4% [3] - Year-to-date, CHD stock prices have fallen by 22.1%, and over the past 52 weeks, they have decreased by 23.9%, while XLP experienced a 1% dip in 2025 and a 5.6% drop over the past year [4] - Following the release of better-than-expected Q3 results on October 31, CHD stock surged by 7.2% [5] - The company reported a 5% year-over-year increase in net sales to $1.6 billion, exceeding expectations by 3.3% [5] - Adjusted EPS rose by 2.5% year-over-year to $0.81, surpassing consensus estimates by 11% [5] Market Position - CHD stock has outperformed its peer, The Clorox Company (CLX), which saw a 37.9% decline in 2025 and a 39.6% drop over the past 52 weeks [6] - Among 21 analysts covering CHD stock, the consensus rating is a "Moderate Buy," with a mean price target of $98.28, indicating a 20.4% upside potential from current levels [6]

Core Insights - Church & Dwight Co., Inc. (NYSE:CHD) is recognized as one of the 13 most undervalued dividend stocks according to Wall Street analysts [1] - Oppenheimer has lowered its price target for Church & Dwight from $115 to $100 while maintaining an Outperform rating, citing sector challenges [2][3] Company Performance - Church & Dwight announced a quarterly dividend of $0.295 per share, consistent with previous payouts, and has a strong dividend history with 29 consecutive years of increases and 124 years of regular dividends [4] - As of October 29, the stock has a dividend yield of 1.44% [4] Sector Challenges - Oppenheimer highlights several challenges in the consumer packaged goods (CPG) sector, including limited pricing power, GLP-1 risks affecting food brands, a focus on private-label products by major retailers, tariff concerns, and changing consumer preferences [3]