New York-based Colgate-Palmolive Company (CL) is a leading global consumer products company that produces, distributes, and provides household, health care, personal care, and veterinary products. Valued at a market cap of $73.4 billion, the company’s product portfolio includes well-known brands like Colgate, Palmolive, Softsoap, and Hill's Science Diet, and more.

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and CL fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the household & personal products industry. The company’s strengths lie in its strong brand equity, global reach, and dominance in the oral care segment, where it holds one of the highest market shares in toothpaste and toothbrushes worldwide. Its strong distribution network, deep consumer insights, and localized marketing strategies help it stay competitive across both developed and emerging markets.

This oral care giant has dipped 17.1% from its 52-week high of $109.30, reached on Sep. 5, 2024. Shares of CL have declined 2.4% over the past three months, lagging behind the Consumer Staples Select Sector SPDR Fund’s (XLP) marginal drop during the same time frame.

In the longer term, Colgate-Palmolive has fallen 2% over the past 52 weeks, underperforming XLP’s 7.1% uptick over the same time frame. Moreover, on a YTD basis, shares of CL are down marginally, compared to XLP’s 5.3% rise. 

To confirm its bearish trend, CL has been trading below its 200-day moving average since late October, 2024, with some fluctuations, and has remained below its 50-day moving average since late April, with slight fluctuations. 

On Apr. 25, shares of CL gained 1.3% after its better-than-expected Q1 earnings release. The company's net sales declined 3% year-over-year to $4.9 billion but topped the consensus estimates by 1%. Currency headwinds and lower private label pet volume impacted its overall net revenue. Nonetheless, despite a period of slowing category growth in many markets, its organic sales improved from the year-ago quarter, reflecting the strength of its brands and its commitment to executing against its strategy. Moreover, its adjusted EPS of $0.91 advanced 5.8% from the same quarter last year, exceeding Wall Street expectations by the same margin. An 80 basis-point improvement in its adjusted operating profit margin supported its profitability. 

CL has lagged behind its rival, The Procter & Gamble Company’s (PG) marginal fall over the past 52 weeks, However, on YTD basis, both stocks have recorded a similar slight downtick. 

Despite CL’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 20 analysts covering it, and the mean price target of $98.50 suggests an 8.7% premium to its current price levels.