A high-quality consumer franchise with a perfect four-quarter earnings-beat streak and free cash flow that exceeds net income has run above its near-term price target, leaving a marginally unfavorable risk/reward with downside slightly exceeding residual upside; the investment case rests on the quality and consistency of the business, but the current price offers little entry cushion.
Thesis pillars
- Consistent Earnings Delivery→Stable
- Price Above Near Term Target→Stable
- Elevated Leverage Limits Flexibility↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Colgate-Palmolive Company (CL) Stock Analysis
Temporary headwind edge
Consumer Defensive · Household & Personal Products
Sell if holding. At $85.83, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 13.9): -1.5; Thin upside margin: 3.6%.
Colgate-Palmolive markets oral, personal, home care, and pet nutrition products across 200+ countries, with Oral Care (Colgate, elmex, Tom's of Maine) at 44% and Pet Nutrition (Hill's) at 23% of 2025 net sales. Walmart represented approximately 11% of net sales in 2025, the only... Read more
Sell if holding. At $85.83, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 13.9): -1.5; Thin upside margin: 3.6%. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.9/10, moderate confidence.
Passes 6/9 gates (clean insider activity, news boost analyst 0.35, news boost analyst cluster(4), earnings proximity 35d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and 8k serious 2.05. Suitability: conservative.
Recent developments
updated 2026-09-25Recent Developments — Colgate-Palmolive Company
Latest news
- NEWS Charter Communications Inc. Cl A stock outperforms competitors on strong trading day - MarketWatch — MarketWatch positive
- NEWS Accenture PLC Cl A stock outperforms competitors on strong trading day - MarketWatch — MarketWatch positive
- NEWS CrowdStrike Holdings Inc. Cl A stock falls Wednesday, still outperforms market - MarketWatch — MarketWatch neutral
- NEWS Royal Bank of Canada Grows Stock Holdings in Colgate-Palmolive Company $CL - MarketBeat — MarketBeat positive
- NEWS Ahead of Colgate-Palmolive’s (CL) Q1 Results, Here’s What Technical Indicators Are Suggesting - TipRanks — TipRanks neutral
Generated 2026-09-26T04:01:57Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerWalmart11%10-K Item 1: 'Our sales to Walmart, Inc. and its affiliates represented approximately 11% of our Net sales in 2025.'
- MEDIUMProductOral Care44%10-K Item 1: 'Sales of Oral, Personal and Home Care products accounted for 44%, 17% and 16%, respectively, of our total worldwide Net sales in 2025.'
- MEDIUMSuppliersingle-source suppliers10-K Item 1: 'We do, however, purchase certain key raw and packaging materials from single-source suppliers or a limited number of suppliers'
Material Events(8-K, last 90d)
- 2026-05-01Item 2.05MEDIUMUpdate on Strategic Growth and Productivity Program (Board-approved July 31, 2025): three-year initiative to realign organizational structure in support of 2030 strategy. Filing discloses costs associated with exit or disposal activities; specific charge amount truncated in available excerpt.SEC filing →
- 2026-04-09Item 5.02MEDIUMJennifer M. Daniels (CLO and Secretary since 2014) announced retirement in 2026. Betsy Fishbone (EVP and Deputy CLO) elected CLO and Secretary effective June 1, 2026; Daniels transitions to Vice Chair for orderly handoff.SEC filing →
- 2026-03-12Item 5.02LOWChristopher S. Boerner, Ph.D. (CEO and Board Chair of Bristol-Myers Squibb) elected to Colgate-Palmolive Board, effective March 15, 2026. Board appointment only; no officer change.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $85.83, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 13.9): -1.5; Thin upside margin: 3.6%. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $82.83. Score 4.9/10, moderate confidence.
Take-profit target: $88.92 (+3.6% upside). Prior stop was $82.83. Stop-loss: $82.83.
Thin upside margin: 3.6%; Leverage penalty (D/E 13.9): -1.5; Weak overall score: 4.9/10.
Colgate-Palmolive Company trades at a P/E of 33.7 (forward 20.8). TrendMatrix value score: 5.2/10. Verdict: Sell.
31 analysts cover CL with a consensus score of 3.7/5. Average price target: $99.
What does Colgate-Palmolive Company do?Colgate-Palmolive markets oral, personal, home care, and pet nutrition products across 200+ countries, with Oral Care...
Colgate-Palmolive markets oral, personal, home care, and pet nutrition products across 200+ countries, with Oral Care (Colgate, elmex, Tom's of Maine) at 44% and Pet Nutrition (Hill's) at 23% of 2025 net sales. Walmart represented approximately 11% of net sales in 2025, the only disclosed customer above 10%; two-thirds of revenues originate outside the United States. The company employs approximately 33,600 people across more than 100 countries.