Valued at a market cap of $68.5 billion, Colgate-Palmolive Company (CL) is a leading consumer products company based in New York. It emphasizes science-led innovation, digital transformation, and the integration of artificial intelligence to drive productivity and consumer engagement.
This consumer products company has lagged the broader market over the past 52 weeks. Shares of CL have declined 4.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 26.6%. However, on a YTD basis, the stock is up 9.3%, outpacing SPX’s 5.2% rise.
Looking closer, PG has also underperformed the State Street Consumer Staples Select Sector SPDR Fund’s (XLP) 2.4% rise over the past 52 weeks. Nonetheless, it has outpaced XLP’s 7.5% YTD uptick.
On May 1, shares of CL closed up marginally after its better-than-expected Q1 earnings release. The company’s revenue increased 8.4% year-over-year to $5.3 billion, topping consensus estimates by 2.3%. Management credited improved sales volumes and strong brand performance in emerging markets, particularly in the Asia Pacific, as key contributors. Its adjusted EPS of $0.97 also surpassed Wall Street expectations of $0.95.
For the current fiscal year, ending in December, analysts expect CL’s EPS to grow 3.8% year over year to $3.83. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 10 “Strong Buy,” three “Moderate Buy,” seven “Hold,” and one "Strong Sell” rating.
The configuration is slightly more bullish than a month ago, with nine analysts suggesting a "Strong Buy" rating.
On May 3, Andy Sim from DBS maintained a “Hold” rating on CL, with a price target of $95, indicating a 10% potential upside from the current price levels.
The mean price target of $94.68 suggests a 9.7% premium to its current price levels, while its Street-high price target of $105 implies a 21.6% potential upside.
