Colgate-Palmolive Company (NYSE:CL) is included among the 15 Best Wide Moat Dividend Stocks to Invest in. Barclays Lifts Colgate (CL) Target as 2026 Growth Outlook Improves On February 3, Barclays analyst Lauren Lieberman raised the price recommendation on Colgate-Palmolive Company (NYSE:CL) to $88 from $83. The firm kept an Equal Weight rating. The analyst said in the research note that growth in 2026 should look better than 2025, but the company likely won’t get the same lift from inflation-driven pric ...

Key Takeaways CL topped Q4 estimates as EPS rose 4% to 95 cents and net sales climbed 5.8% to $5.23B.Colgate relied on 2.7% pricing gains to lift organic sales, offsetting volume declines in multiple regions.CL saw Latin America deliver 6.5% organic sales growth, aided by higher pricing, volumes and currency.Colgate-Palmolive Company (CL) has reported fourth-quarter 2025 results, wherein both top and bottom lines increased year over year and surpassed the Zacks Consensus Estimate. Results benefited from sol ...

Toothpaste maker Colgate-Palmolive forecast annual sales above Wall Street estimates on Friday, benefiting from steady demand for essential household staples in markets such as Latin America and Europe. ...

Group 1 - Johnson & Johnson (NYSE: JNJ) is viewed positively by money managers as a resilient stock during economic slowdowns, with essential products like toothpaste and medicine that consumers will purchase regardless of economic conditions [1] - The recent stock performance of JNJ suggests strong investor interest, although the pace of its rally may be influenced by a broader market sentiment favoring defensive stocks amid economic uncertainty [1] - JNJ is being favored over other pharmaceutical stocks like Eli Lilly, which has a higher price-to-earnings multiple, making it appear riskier to investors in the current climate [1] Group 2 - Johnson & Johnson develops and sells a wide range of healthcare products, including pharmaceuticals and medical technologies, with a focus on areas such as immunology, oncology, neuroscience, cardiovascular care, and infectious diseases [2] - The company also provides various medical devices and solutions, including surgical systems, orthopedic solutions, cardiovascular devices, and vision care products [2]

Core Viewpoint - Colgate-Palmolive Company (NYSE:CL) is recognized as a potential investment opportunity, particularly in the consumer staples dividend stock category, with expectations for growth in 2026 despite current market challenges [1][2]. Group 1: Financial Performance and Market Position - Piper Sandler upgraded Colgate-Palmolive to Overweight from Neutral, raising the price target to $88 from $82, indicating confidence in the company's future growth potential [2]. - The company experienced continued softness in Q4, with a 2.3% price increase in Q3 but a 1.9% decline in volumes compared to the previous year [3]. - CEO Noel Wallace highlighted weak consumer sentiment in North America, with increased discount-seeking behavior and underperformance in household products [4]. Group 2: Market Challenges and Strategic Responses - Colgate cut its annual sales forecast due to rising economic uncertainty affecting consumer spending on higher-priced products, impacting everyday categories like oral and personal care [3]. - The company faces pressure from the "Buy Canadian" movement in Canada and weaker demand in Colombia, Central America, and India, alongside expected tariff-related costs of approximately $75 million [4]. - Colgate's strategy includes raising prices to offset the impact of U.S. tariffs, which has led some consumers to opt for cheaper alternatives [3]. Group 3: Growth Potential and Market Strategy - Colgate-Palmolive is positioned as a growth company with operations in Oral Care, Personal Care, Home Care, and Pet Nutrition, indicating a diversified portfolio [5]. - Analysts see early signs of improvement in emerging markets, which could enhance Colgate's growth trajectory if momentum continues [2].

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]

Core Insights - The Chinese fast-moving consumer goods (FMCG) market showed signs of stabilization in 2025, with total sales growing by 1.3% year-to-date Q3, driven by a 3.8% increase in volume, while average selling prices (ASP) declined by 2.4% [15][19][51] - Lower-tier cities (Tiers 3-5) accounted for approximately 80% of market expansion, benefiting from urbanization, brand penetration, and lower living costs, while Tier 1-2 cities remained flat due to slower macro recovery and consumption downgrading [16][27] - Emerging channels such as membership stores, snack collection stores, and discount stores experienced rapid growth, with year-over-year increases of 40%, 51%, and 92% respectively, while online channels grew by 7% [17][19] Market Performance - The FMCG market recorded a modest growth of 1.3% in the first three quarters of 2025, with volume growth of 3.8% and a decline in ASP of 2.4% [15][19] - Packaged food (+3.4%) and home care (+3.3%) led the growth, while personal care saw a slight recovery (+1.1%) and beverages faced a downturn (-1.1%) [31][34] - Price deflation moderated from 3.4% in 2024 to 2.4% in 2025, indicating a shift in consumer behavior towards balancing price and quality [51][52] Category Dynamics - Packaged food maintained growth driven by stable demand in core staples and snacking categories, while beverages struggled due to price competition and substitution by freshly made drinks [31][34] - Personal care showed early signs of recovery, particularly in makeup, which rebounded strongly, while toothpaste was the only category to see both volume and ASP growth [42][43] - The beverage category faced challenges, with milk and yogurt experiencing significant declines in both volume and ASP, while juice and beer showed positive growth [34][40] Channel Evolution - Traditional offline channels faced pressure, but new demand generation channels expanded rapidly, with O2O channels rebounding strongly [17][19] - Online channels saw a slight increase in penetration to 39%, with Douyin and Pinduoduo contributing over 40% of total FMCG e-commerce sales [17][19] - The rise of private labels was notable, with an average annual growth of 44% over two years, now accounting for 2% of FMCG sales [17] Pricing Trends - The deflationary trend persisted, with 19 out of 27 FMCG subcategories experiencing price declines, although some categories like juice and chocolate showed signs of premiumization [51][52][53] - Consumers are increasingly making thoughtful decisions between price and quality, leading to more disciplined promotional strategies from brands [51][52]

Core Insights - Exchange-traded funds (ETFs) provide a means for investors to diversify portfolios and manage risks during economic downturns [1][2] - Consumer staples are identified as a resilient sector during recessions, historically outperforming other sectors [4][5] Investment Strategy - Long-term investors should prepare for volatility and consider exposure to defensive sectors, which can provide reliable passive income during recessions [3] - Allocating a portion of capital to defensive ETFs like the Consumer Staples Select Sector SPDR Fund (XLP) is recommended, especially as investors approach retirement [10][11] Sector Performance - Consumer staples have shown strong performance historically, with an average return of 14% in the 12 months preceding recessions and 10% in the 12 months following [6][5] - The sector has consistently outperformed others during recession periods since 1990, including notable economic downturns [5] ETF Details - The Consumer Staples Select Sector SPDR Fund (XLP) has a yield of 2.71% and a diversified investment across various consumer staples categories [7][8] - Top holdings in the fund include Walmart (11.05%), Costco Wholesale (9.33%), Procter & Gamble (8.18%), Coca-Cola (6.62%), and Philip Morris International (5.77%) [12]

Core Insights - Colgate-Palmolive Company is recognized as one of the 15 Best Boring Dividend Stocks to Buy [1] - Barclays has reduced its price target for Colgate-Palmolive to $80 from $82 while maintaining an Equal Weight rating, highlighting the company's efforts to drive category growth and market share [2] - In Q3 2025, Colgate-Palmolive reported revenue of $5.13 billion, reflecting a 2% increase year-over-year, maintaining a leading position in toothpaste with a 41.2% global market share and 32.4% in manual toothbrushes [2] - The company generated $2.7 billion in operating cash flow during the first nine months of fiscal 2025, with a shift in management focus towards the 2030 Strategy to enhance organizational agility [3] - Colgate-Palmolive's product portfolio includes oral care, personal care, home care, and pet nutrition [4]

Core Insights - Colgate-Palmolive Company is often underestimated when viewed solely through its basic product offerings like toothpaste and body wash, but a deeper analysis reveals significant business dynamics [1] Valuation Methodology - Various methods exist for determining a company's fair value, with the DCF method being complex and prone to biases, while the multiples approach relies on the assumption that peer companies are fairly priced, which is often not the case [1] - Reverse valuation starts from the market price and discount rate, working backward to uncover the free cash flow assumptions embedded in the price, providing a more straightforward assessment of market beliefs [1] - The Free Cash Flow to Equity (FCFE) model is utilized to determine what belongs to shareholders, calculated as Earnings + Amortization – CAPEX – average acquisition cost = FCFE, ignoring working capital and debt changes for clarity [1] - Forecasts employ the H-model, which features a 10-year two-stage growth fade, with terminal growth aligned to the risk-free rate, specifically the 10-year government bond yield [1] - All cash flows are discounted using the cost of equity, calculated as RFR × beta + 5% ERP, resulting in a clear and noise-free valuation of the business [1]