Colgate-Palmolive (CL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 31, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis consumer products maker is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of +3.3%.
Revenues are expected to be $5.35 billion, up 4.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.04% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Colgate-Palmolive?For Colgate-Palmolive, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.78%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Colgate-Palmolive will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Colgate-Palmolive would post earnings of $0.95 per share when it actually produced earnings of $0.97, delivering a surprise of +2.11%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Colgate-Palmolive doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Consumer Products - Staples industry, Procter & Gamble (PG - Free Report) , is soon expected to post earnings of $1.41 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -4.7%. This quarter's revenue is expected to be $21.36 billion, up 2.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for P&G has been revised 0.8% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.23%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that P&G will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Boston Common Asset Management LLC lifted its position in shares of Colgate-Palmolive Company (NYSE:CL – Free Report) by 7.1% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 250,152 shares of the company’s stock after acquiring an additional 16,502 shares during the quarter. Colgate-Palmolive makes up about 1.4% of Boston Common Asset Management LLC’s investment portfolio, making the stock its 15th largest position. Boston Common Asset Management LLC’s holdings in Colgate-Palmolive were worth $21,320,000 at the end of the most recent reporting period.
Other hedge funds have also added to or reduced their stakes in the company. Kemnay Advisory Services Inc. acquired a new position in Colgate-Palmolive during the 4th quarter valued at about $25,000. CBIZ Investment Advisory Services LLC raised its stake in shares of Colgate-Palmolive by 86.7% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 323 shares of the company’s stock worth $26,000 after buying an additional 150 shares during the last quarter. TD Capital Management LLC lifted its holdings in Colgate-Palmolive by 61.4% in the fourth quarter. TD Capital Management LLC now owns 326 shares of the company’s stock valued at $26,000 after buying an additional 124 shares during the period. Triumph Capital Management lifted its holdings in Colgate-Palmolive by 62.9% in the fourth quarter. Triumph Capital Management now owns 329 shares of the company’s stock valued at $26,000 after buying an additional 127 shares during the period. Finally, Jessup Wealth Management Inc bought a new position in Colgate-Palmolive in the fourth quarter valued at approximately $26,000. Institutional investors own 80.41% of the company’s stock.
Analyst Ratings Changes CL has been the subject of several recent research reports. Rothschild & Co Redburn set a $100.00 target price on shares of Colgate-Palmolive and gave the company a “buy” rating in a research report on Tuesday, April 21st. Wells Fargo & Company lifted their price objective on Colgate-Palmolive from $92.00 to $95.00 and gave the stock an “equal weight” rating in a research note on Wednesday, July 8th. Wall Street Zen downgraded Colgate-Palmolive from a “buy” rating to a “hold” rating in a report on Sunday, March 29th. JPMorgan Chase & Co. increased their target price on Colgate-Palmolive from $96.00 to $104.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Morgan Stanley restated an “overweight” rating on shares of Colgate-Palmolive in a research report on Monday, May 4th. Twelve research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $97.41.
Get Our Latest Report on CL
Colgate-Palmolive Stock Down 0.2% Colgate-Palmolive stock opened at $92.84 on Monday. The company has a 50 day moving average of $90.46 and a 200-day moving average of $88.60. The company has a quick ratio of 0.67, a current ratio of 1.02 and a debt-to-equity ratio of 16.33. Colgate-Palmolive Company has a twelve month low of $74.54 and a twelve month high of $99.33. The stock has a market capitalization of $74.29 billion, a PE ratio of 36.12, a price-to-earnings-growth ratio of 4.90 and a beta of 0.33.
Colgate-Palmolive (NYSE:CL – Get Free Report) last issued its quarterly earnings data on Friday, May 1st. The company reported $0.97 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.03. The business had revenue of $5.32 billion for the quarter, compared to analyst estimates of $5.22 billion. Colgate-Palmolive had a net margin of 10.04% and a return on equity of 386.76%. The firm’s quarterly revenue was up 8.4% on a year-over-year basis. During the same period last year, the business posted $0.91 earnings per share. On average, equities research analysts anticipate that Colgate-Palmolive Company will post 3.81 EPS for the current fiscal year.
Colgate-Palmolive Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Monday, July 20th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Monday, July 20th. Colgate-Palmolive’s payout ratio is 82.49%.
Colgate-Palmolive Company Profile (Free Report)
Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care.
The company’s core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business.
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NEW YORK--(BUSINESS WIRE)--Colgate-Palmolive Company (NYSE:CL) will provide a live webcast of its 2026 second quarter earnings conference call on Friday, July 31, 2026, at 8:30 a.m. ET. The call will be hosted by Chairman, President and CEO, Noel Wallace, Chief Financial Officer, Stan Sutula, Executive Vice President, Investor Relations, Claire Ross, and Executive Vice President, M&A and Special Projects, John Faucher. Investors may access the earnings press release, prepared materials and.
The “dividend kings”: are companies that have raised dividends for 50 years in a row. They are supposed to be lazy stocks like Colgate-Palmolive (NYSE: CL | CL Price Prediction) and Coca-Cola (NYSE: KO). One is up more than a performance leader of the Magnificent Seven. Alphabet (NASDAQ: GOOG) is up 13%, just above the market. Altria (NYSE: MO), the huge tobacco company, has posted a 24% surge this year.
In a world in which tech companies were the stock market leaders for over two years, many investors want to dodge the risk of AI, which is causing America’s mega tech companies to drain their balance sheets of cash and forcing them to use debt to raise money. The economy overall has been less than stable, with inflation at moderately high levels, employment gains mediocre, and a war in the Middle East. In the meantime, smokers continue to smoke, and Altria has started to move into tobacco products beyond cigarettes.
Altria’s top brand, which accounts for over 90% of its sales, is Marlboro. It used to be listed among the world’s most valuable brands and was sometimes in the top 10. It has been dropped completely from those lists, likely because it is tobacco, which, because of its health effects, is shied away from
Altia’s dividend yield is over 5.5%. It has raised its dividend 60 times in the last 56 years.
Regardless of these benefits, the company remains a difficult investment for many because of its products. The plain fact is that the CDC reports that 480,000 Americans die from smoking every year. Worldwide, the figure is above 8 million. It is the largest preventable cause of death globally. Altria is a “sin stock,” a term usually applied to all tobacco and alcohol companies.
In the first quarter of this year, revenue rose 3.2% to $5.43 billion. Reported diluted EPS more than doubled to $1.30. More than the earnings, investors cheered the guidance. “We reaffirm our expectation to deliver 2026 full-year adjusted diluted EPS in a range of $5.56 to $5.72, representing a growth rate of 2.5% to 5.5% from a base of $5.42 in 2025,” the company said
For those who worry about a market sell-off, Altria is an excellent safe harbor, if you can stand what the company does to make money.
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As of market close on July 3, the S&P 500 (^GSPC +0.72%) and the Nasdaq-100 are up 9.3% and 16.2%, respectively, year to date (YTD). This is well ahead of their historical average annual gains. The tech sector, especially semiconductor stocks, has been the driver of broader market returns. But that doesn't mean all value stocks are underperforming the major indexes.
Colgate-Palmolive (CL 1.93%) is up 20.4% YTD. And it's also an ultra-reliable dividend stock that has paid uninterrupted dividends since 1895 and has increased its payout for 63 consecutive years. That streak earns Colgate-Palmolive a spot on the list of Dividend Kings, which are companies that have paid and increased their dividends for at least 50 consecutive years.
Here's why Colgate-Palmolive remains a top buy now even after its recent run-up.
Image source: Getty Images.
Colgate-Palmolive is at the top of its game Colgate-Palmolive has been a standout in the household and personal products industry. The company is guiding for 2026 net sales growth of 2% to 6% and organic sales growth of 1% to 4% at a time when many of its peers are experiencing sales declines. And even with margins under pressure, Colgate-Palmolive remains one of the most profitable companies in its industry. By comparison, Unilever, Kenvue, Church & Dwight, Clorox, Kimberly-Clark, and Estee Lauder all have operating margins under 20%.
CL Revenue (TTM) data by YCharts
The industry has been dealing with inflationary pressures and consumer resistance to price increases. But Colgate-Palmolive has done a masterful job of navigating these challenges through its elite brand portfolio, highly efficient supply chain and operations, and geographic diversification.
In addition to its flagship Colgate and Palmolive brands, the company owns Softsoap, Irish Spring, Tom's of Maine, and Speed Stick, among others. One of Colgate-Palmolive's top brands, Hill's Pet Nutrition, made up 23% of total 2025 sales.
Without factoring in Hill's, Europe, Middle East, and Africa (EMEA), Latin America, and Asia Pacific sales are more than triple those of North America, which has helped make Colgate-Palmolive resistant to U.S.-specific inflationary pressures. In the first quarter of 2026, North America was the only region that reported declining net and organic sales, while Latin America and EMEA posted double-digit growth and total company net sales rose 8.4% year over year.
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A dividend you can count on Colgate-Palmolive is far from cheap -- trading at 25 times forward earnings -- because the stock price has been rising faster than the company's earnings growth. But Colgate-Palmolive deserves its premium valuation because its results are solid despite a difficult operating environment. This resilience is particularly appealing to risk-averse folks seeking a stable passive income stream to help supplement retirement income. If inflationary pressures ease and consumer spending improves, a rising tide will lift the broader household and personal products industry. But Colgate-Palmolive isn't dependent on those factors to drive sales growth.
Colgate-Palmolive yields 2.2%, which is good but not quite high-yield territory. Many of its peers offer higher yields because they distribute the vast majority of their cash flow to shareholders through dividends, whereas Colgate-Palmolive's dividend is highly affordable. Its trailing-12-month free cash flow per share is at an all-time high of $4.66, well over double its $2.06 per-share annualized dividend.
So while Colgate-Palmolive could easily afford to pay a higher dividend, the company prefers a balanced approach of using cash to reinvest in the business, paying a steadily growing (and manageable) dividend, and buying back stock. Colgate-Palmolive has reduced its share count by 10% over the last decade, which has helped make the stock a better value.
Investing in a market leader Colgate-Palmolive's geographic diversification and portfolio of leading brands across pet nutrition and oral, personal, and home care make it highly recession resistant. The company continues to deliver solid growth through volume and price increases, while many of its peers face a difficult trade-off: either cutting prices to drive volume or keeping prices high at the expense of lower sales volumes.
All told, Colgate-Palmolive stands out as one of the most reliable dividend-paying stocks on the market. It's a top buy for the second half of the year for investors who don't mind paying a premium price for a quality company.
Procter & Gamble (NYSE:PG | PG Price Prediction) and Colgate-Palmolive (NYSE:CL) both posted top and bottom line beats in their most recent quarters.
PG’s fiscal Q3 2026 leaned on Beauty and broad regional strength. Colgate’s Q1 2026 leaned on Latin America and Hill’s Pet. Same shelf, very different engines.
Beauty Powers P&G. Latin America Powers Colgate. P&G’s headline was breadth. Revenue of $21.23 billion rose 7.4% YoY, and every one of the five segments grew. Beauty led with 11% reported growth, powered by Hair Care, Skin Care and premium play SK-II, which the CFO said grew 18% overall with double-digit gains in China.
Core EPS of $1.59 beat consensus, the fourth straight quarter of doing so. The catch: core gross margin fell 100 basis points on tariffs and mix, and currency-neutral core EPS was flat.
Colgate’s story was geographic imbalance. Total revenue of $5.32 billion grew 8.4% YoY, with Latin America up 14.8% and Europe up 11.9%. North America went the other way, sliding 1.8% on a 3.2% volume decline.
CEO Noel Wallace said “North America was going to take some time” and pointed to late shelf resets and heavier competitor couponing. Hill’s Pet Nutrition kept humming, up 6.7% with a boost from Prime100.
One Reinvests Into Momentum. One Restructures Harder. CEO Shailesh Jejurikar said P&G is “increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment”.
That framing runs through Tide Evo, the biggest formula upgrade in 25 years, and Mr. Clean innovation delivering 18x fair share of bath cleaning category growth since launch. Tariffs sting to the tune of roughly $400 million after-tax, and management now guides to the low end of the $6.83 to $7.09 core EPS range.
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Business Driver P&G Colgate Main growth engine Beauty (Hair, Skin, SK-II) Latin America + Hill’s Pet Weak spot Grooming, Health Care volume North America volume Organic growth 3% 2.9% Colgate is choosing surgery. It expanded the SGPP restructuring to $350 to $550 million in cumulative pretax charges targeting $200 to $300 million in annual savings.
Gross margin guidance flipped from up to down thanks to $300 million in extra raw materials and logistics costs, with oil byproducts expected up more than 20% year over year. Advertising still climbed to $734 million, so Wallace is not starving the brands.
The Next Test Is Whether North America Wakes Up For Colgate, the whole thesis rides on U.S. shelves normalizing after late resets and on Hill’s holding its premium pricing. Shares are up 21.89% year to date, so the market has already granted some benefit of the doubt.
P&G’s next hurdle is different. Grooming and Health Care volumes need to turn, and the $1 billion pretax oil-linked headwind the CFO flagged will land mostly in Q4. Stock is up 7.18% YTD and still down 3.4% over the past year.
P&G as Ballast, Colgate as the Rebound Trade Setup P&G screens as the steadier of the two. The breadth of growth, all 10 categories and all 7 regions up, plus a 70th consecutive annual dividend increase, is the kind of consistency I want when tariffs and oil are wild cards.
For a turnaround profile, Colgate carries the more asymmetric setup. The North America drag is real, but Latin America is doing heavy lifting and the SGPP savings could compound if Wallace’s team executes. Both names get harder to underwrite if Brent sits near $110 for long.
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If you're an investor looking for dividend consistency, a yield over 2%, and stock appreciation of 16% year to date, you might be surprised that consumer staples veteran Colgate-Palmolive Company (CL +2.56%) fits the bill.
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Yes, the maker of cleaning supplies, shower soap, and even pet food has had an excellent year in the market. The company has also paid an uninterrupted dividend since 1895 and increased that dividend for 64 straight years. It is truly one of the most remarkable Dividend Kings available. A Dividend King is a company that has raised its dividend for at least 50 consecutive years.
Colgate recently increased its quarterly payout to $0.53 per share. The dividend is funded by the company's free cash flow of about $3.6 billion. Colgate is also experiencing strong growth for a company of its size. In the first quarter of 2026, net sales increased 8.4%, and the company maintained its full-year 2026 guidance.
Image source: Getty Images.
The biggest challenge for Colgate is the ongoing battle with inflationary pressures on materials. This was evident in the first-quarter results, as earnings per share and gross profit margin decreased. Fortunately, Colgate has very strong pricing power and global brand recognition. The company has also invested heavily in technology to drive innovation and improve efficiency.
For long-term income-focused investors, Colgate is a defensive hybrid offering both a solid yield and growth. The stock's current forward P/E ratio is about 24 and is also trading at about three times company sales, which could be perceived as slightly overvalued. Still, for income investors who plan to buy and hold, Colgate-Palmolive is an attractive investment that shouldn't be overlooked.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Colgate-Palmolive. The Motley Fool has a disclosure policy.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Colgate-Palmolive (CL - Free Report) , which belongs to the Zacks Consumer Products - Staples industry, could be a great candidate to consider.
When looking at the last two reports, this consumer products maker has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 3.25%, on average, in the last two quarters.
For the most recent quarter, Colgate-Palmolive was expected to post earnings of $0.95 per share, but it reported $0.97 per share instead, representing a surprise of 2.11%. For the previous quarter, the consensus estimate was $0.91 per share, while it actually produced $0.95 per share, a surprise of 4.40%.
Price and EPS Surprise
For Colgate-Palmolive, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Colgate-Palmolive currently has an Earnings ESP of +0.78%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 31, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Ollie's Bargain Outlet (OLLI) and Colgate-Palmolive (CL). But which of these two stocks is more attractive to value investors?
Key Takeaways CL is using pricing actions and productivity initiatives to offset tariffs and cost pressures.Colgate is driving growth through premium innovation, including launches and brand relaunches.CL is investing in digital, analytics and AI to enhance innovation and optimize marketing execution. Colgate-Palmolive Company (CL - Free Report) is effectively leveraging its pricing power to support growth and mitigate external cost pressures. The company’s productivity program centers on cost savings and efficiency initiatives designed to strengthen its operational foundation. CL’s pricing strategy includes competitive pricing, value-based tactics and price segmentation to address diverse consumer needs while optimizing value.
Colgate’s strong brand equity continues to remain a major competitive advantage, enabling it to maintain positive pricing momentum and resilient volume performance despite a sluggish global consumption environment and significant inflationary pressures. Management emphasized that the strength of its global brands allowed the company to deliver both pricing and volume growth across most categories and divisions, particularly in emerging markets.
Sustained investments in advertising, omnichannel demand generation, digital capabilities and science-based innovation continue to strengthen consumer trust and brand loyalty, supporting Colgate’s ability to offset rising raw material, logistics and tariff-related costs through pricing and premium product innovation. The company is benefiting from key pricing actions, coupled with its funding-the-growth program and other productivity moves, aimed at driving efficiency and expanding margins.
Colgate continues to prioritize innovation as a key driver of growth across categories, geographies and price tiers. Management highlighted that premium innovation is fueling momentum, with launches such as Colgate Miracle Repair serum, EltaMD UV Skin Recovery, and relaunches of Colgate Total, Sanex, Protex, Suavitel, and Hill’s therapeutic lines. Such initiatives are helping strengthen brand health and expand household penetration by bringing consumer-perceived value at every price point.
Beyond Oral Care, Colgate’s skincare brands, including EltaMD and PCA Skin, remain growth engines, supported by consumer trade-ups to premium offerings. The company is also accelerating investment in digital, data, analytics and AI to sharpen its innovation model and optimize marketing execution. Such efforts are likely to continue driving sustained growth and profitability.
CL’s Price Performance, Valuation and EstimatesColgate’s shares have 16.6% in the past six months compared with the industry’s 1.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, CL trades at a forward price-to-earnings ratio of 23.16X compared with the industry’s average of 18.27X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CL’s 2026 and 2027 EPS indicates year-over-year growth of 3.3% and 6%, respectively. The company’s EPS estimate for 2026 has decreased a penny in the past 30 days but the same for 2027 has risen a penny.
Image Source: Zacks Investment Research
Colgate currently carries a Zacks Rank #3 (Hold).
Stocks to Consider in the Consumer Staples SpaceThe Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chefs' Warehouse current financial-year sales indicates growth of 8.3% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Nomad Foods Limited (NOMD - Free Report) , which manufactures and distributes frozen foods, currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Nomad Foods’ current financial-year sales is expected to rise 0.5% from the year-ago reported figure. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 65.5% in the last reported quarter.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 26% from the year-ago number.
Procter & Gamble (NYSE:PG | PG Price Prediction) and Colgate-Palmolive (NYSE:CL) both just reported, and the earnings reports sharpened a debate dividend investors have been having for years.
P&G posted its fiscal Q3 2026 with core EPS of $1.59 on net sales of $21.235 billion. Colgate followed with Q1 2026 adjusted EPS of $0.97 on revenue of $5.324 billion. Both lean on staples brands. Only one runs the bigger dividend machine.
Tide and Pampers Carry P&G. Hill’s and Latin America Carry Colgate. P&G’s quarter looked broad. Beauty grew 11% reported, Grooming added 7%, and Fabric & Home Care delivered $7.403 billion in sales. CEO Shailesh Jejurikar called it “a solid acceleration in top-line results… with broad-based growth across product categories and regions.”
Tide, Pampers, and Gillette did the heavy lifting, and pricing only contributed one point of organic growth, which tells me volume is finally pulling its weight again.
Dividend Lens P&G Colgate Consecutive annual hikes 70 63 Indicated yield 2.83% 2.33% FY dividends to shareholders ~$10B expected FY26 $1.823B paid in 2025 Trailing P/E 22x 35x Colgate’s mix was lumpier. Oral, Personal and Home Care rose 8.9% to $4.131 billion, and Hill’s Pet Nutrition added $1.194 billion. Latin America organic sales jumped 5.4% and Asia Pacific led at 5.6%.
North America was the sore spot, down 1.8% with volume off 3.2%. Noel Wallace leaned on resilience language, noting the team is “able to execute against our long-term strategy while delivering strong results in a difficult operating environment.”
Scale Versus Reinvention P&G is playing defense on cost. Management flagged roughly $400 million in after-tax tariff drag plus $150 million in commodity headwinds, and core gross margin slipped 100 basis points. The buyback is still real, with over $600 million repurchased in Q3 and roughly $5 billion planned for FY26. Free cash flow productivity sits in the 85% to 90% range.
Colgate is rewiring itself. The expanded Strategic Growth and Productivity Program now carries pretax charges of $350 million to $550 million with targeted annual savings of $200 million to $300 million.
Gross margin guidance was revised lower because of tariffs, while advertising rose to $734 million from $668 million. The most recent dividend ticked up to $0.53 per share. Growth is real, but the restructuring bill is climbing.
The Next Test Is Margin Recovery I want to see whether P&G can hold its $6.83 to $7.09 core EPS guide as tariffs bite. Colgate needs a North America turn, where Speed Stick, Tom’s of Maine, and the core Colgate brand have been ceding shelf to private label. Hill’s matters too. Pet food is still the cleanest growth lane in this comparison, and any volume slowdown would dent the bullish case.
Why I Lean Toward P&G for the Income Sleeve If you want a dividend with the fewest moving parts, I would lean toward P&G. The 136-year payment streak, deeper free cash flow, and a 10-year total price return of 141.11% all argue for staying with scale.
Colgate is the more interesting setup if you believe the SGPP cuts work and Hill’s keeps compounding. At 35x trailing earnings, though, the stock is paying you the lower yield for the harder turnaround. For me, the better dividend stock right now is P&G, and I would only switch if Colgate’s North America volumes inflected positively for two straight quarters.
On June 24, 2026, we present a DCF analysis for Colgate-Palmolive Co (CL), a company that has shown a year-to-date price increase of 17.1% and a modest 5.7% inc
Procter & Gamble (NYSE:PG | PG Price Prediction) is the household name every retirement portfolio reaches for when markets get choppy, and its $350.4 billion market cap makes it the default consumer defensive trade on every desk.
The internals tell a different story.
The Crowded Trade Is Quietly Cracking P&G beat its most recent quarter, but the internals are softening under the polish. Management guided fiscal 2026 results toward the lower end of a $6.83 to $7.09 core EPS range while absorbing a $400 million after-tax tariff headwind and a $100 million commodity hit. Volume has gone quiet in Oral Care, Fabric Care, and Family Care, and the recent top-line gains have leaned on pricing and mix rather than units moving off shelves. That is the exact setup that invites private-label trade-downs when consumer budgets tighten, a risk flagged directly in the organic volume versus pure pricing dynamic going into 2026.
The valuation does not pay you to wait through that. PG trades at a trailing PE of 22 with a 2.85% yield, and shares are down 3.46% over the past year while the broader market has run. This is the crowded mega-cap defensive trade, and the room is full.
The Cash-Flow Powerhouse Already Delivering Colgate-Palmolive (NYSE:CL) just posted its fourth consecutive EPS beat, delivering adjusted EPS of $0.97 against a $0.9445 consensus, on revenue of $5.324 billion that grew 8.41% year over year. Shares are up 16.06% year to date while PG has lagged. Three reasons this gap widens from here.
1. The cash flow is accelerating. Operating cash flow jumped 24.5% to $747 million in Q1 2026, and free cash flow climbed 27.94% to $609 million. Full-year 2025 generated $3.634 billion in free cash and returned $3.033 billion to shareholders. The 60.6% gross profit margin gives Colgate the cushion to absorb input inflation without crimping earnings power.
2. International volume is doing the heavy lifting. Latin America revenue grew 14.8%, Europe 11.9%, and Asia Pacific 8.9%, with emerging markets posting 6.2% organic growth on 3.5% volume gains. Colgate holds 41.1% of the global toothpaste market and 32.6% of manual toothbrushes. The growth engine runs through international markets, away from the U.S. consumer exposure that weighs on PG.
3. Dividend Aristocrat status with room to run. Colgate is a 63-year Dividend Aristocrat, just lifted the quarterly payout to $0.53, and is executing a Strategic Growth and Productivity Program targeting $200 to $300 million in annual pretax savings. At a $72.5 billion market cap with a forward PE of 23, the runway is wider than the crowded trade above it.
CEO Noel Wallace framed the setup plainly: “We delivered a strong start to 2026, with broad-based top and bottom-line growth. Net sales and organic sales grew in every category and in four of five divisions with a nice balance of volume and pricing growth.”
The Action Colgate-Palmolive belongs on the short list of defensive holdings worth researching this week.
Consumer confidence is softening into the back half of spring, and the rotation out of growth and into recession-resistant cash flow is picking up speed. For investors looking to add ballast before the summer, three blue-chip staples stand out: Each delivered a top-and-bottom-line beat in its most recent quarter, each carries a multi-decade dividend track record and each is rated a Buy by our model with double-digit (or near-double-digit) upside to base-case targets.
Here are three defensive compounders worth a look in June.
This infographic details three recession-resistant consumer staples stocks—Coca-Cola, Procter & Gamble, and Colgate-Palmolive—highlighting their recent earnings, dividend growth, and summer investment angles, with data current as of June 10, 2026. Coca-Cola (NYSE: KO) Coca-Cola (NYSE:KO | KO Price Prediction) is the cleanest summer trade in the group. Beverages skew warm-weather, and the company is heading into peak season with serious momentum. Q1 2026 (filed April 28) delivered EPS of 86 cents against an 81-cent estimate and revenue of $12.472 billion, up 12% year over year. Organic revenue growth ran at 10%, global unit case volume rose 3%, and Coca-Cola Zero Sugar volume jumped 13% across all geographic segments.
Operating margin expanded to 35% from 33%, and management raised comparable EPS growth guidance to 8% to 9% versus the $3.00 baseline in 2025, with free cash flow targeted near $12.2 billion. New CEO Henrique Braun said, “We’ve had a strong start to the year. Our performance this quarter reflects our unwavering focus on staying close to the consumer, executing locally and managing complexity.”
At around $84, shares trade at a forward P/E of 24 with a 3% dividend yield backed by a 63rd consecutive annual increase. Our model targets $90.13 base case with 8% upside, supported by 79% bullish analysts.
The caveat: Asia Pacific comparable operating income declined 17% in Q1, and the pending Coca-Cola Beverages Africa sale creates a roughly 4% headwind on net revenues.
Procter & Gamble (NYSE: PG) Procter & Gamble (NYSE:PG) is the laggard turning the corner. Shares are down 6% over the past year but have rebounded 6% in the past week, suggesting the rotation trade is already pulling capital into this name. The Q3 FY2026 report (filed April 24, 2026) showed core EPS of $1.59 versus $1.5552 expected on net sales of $21.235 billion, up 7% year over year. Organic growth of 3% came in broad-based across all five segments, with Beauty leading at 7% organic growth.
The summer angle is structural. Deodorants, laundry, paper, and skin care peak in the warm months, and P&G’s brand stable, including Tide, Pampers, Gillette, Olay, and Charmin, prints reliable cash regardless of macro stress. Management is funneling that cash back to shareholders aggressively: about $10 billion in dividends and $5 billion in repurchases for FY2026, on top of a 70th consecutive annual dividend increase and 136th straight year of dividend payments since 1890.
At around $149, PG trades at a forward P/E of 21 with a 3% yield. Our base case sees $165.63, or 11% upside. CEO Shailesh Jejurikar noted P&G is “increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment.”
The caveat: a roughly $400 million after-tax tariff headwind plus $150 million in commodity costs have management guiding to the lower end of the $6.83 to $7.09 core EPS range.
Colgate-Palmolive (NYSE: CL) Colgate-Palmolive (NYSE:CL) carries the highest model-implied upside in this trio. Q1 2026 (filed May 1) produced adjusted EPS of 97 cents versus the 94-cent consensus on revenue of $5.32 billion, up 8.4% year over year. Organic sales grew 3%, with Latin America up 15%, Europe up 12%, and Asia Pacific up 9%. CEO Noel Wallace called it a “strong start to 2026, with broad-based top and bottom-line growth.”
The summer angle layers nicely: Speed Stick and Irish Spring for personal care, EltaMD for skin, and Hill’s Science Diet for pet travel. Hill’s Pet Nutrition grew 7% in the quarter. Colgate is a Dividend Aristocrat with 63 consecutive years of annual dividend increases and returned $2.9 billion to shareholders in 2025.
At around $89, the stock yields 2% with a forward P/E of 23. Our model targets $105.51 with 17% upside, anchored by a 0.32 beta and 65% bullish analyst sentiment with zero sell ratings.
The caveat: tariffs forced a downward revision to GAAP gross margin guidance, North America organic sales declined 2% with volume off 3%, and the SGPP restructuring program expanded to $350 to $550 million in cumulative charges.
What Investors Should Watch Next All three names share a profile that suits the current setup: low beta, broad-based organic growth, multi-decade dividend records, and consistent earnings beats. Coca-Cola offers the cleanest seasonal volume story, P&G the deepest dividend pedigree at the most reasonable forward multiple, and Colgate the highest model-implied upside. Watch June quarter prints from each and the trajectory of tariff costs for the household products names: that is where the next leg of guidance gets reset.
Colgate-Palmolive Co (CL) Q1 2026 Earnings Call Highlights: Strong Growth Amidst Cost Challenges Colgate-Palmolive Co (CL) reports robust sales growth driven by emerging markets, while navigating cost inflation and competitive pressures. Summary
Organic Sales Growth: Accelerated from the fourth quarter, driven by improved volume performance, particularly in Asia Pacific.Volume and Pricing Growth: Achieved in all four categories and four of five divisions, excluding the impact of private label pet food exit.Emerging Markets Sales Growth: Led by regions where Colgate-Palmolive has higher market shares and scale advantages.Gross Profit, Operating Profit, EPS, and Free Cash Flow: All experienced growth.Annualized Savings Target: $200 million to $300 million, with the majority of savings focused in 2027 and 2028.
Release Date: May 01, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Colgate-Palmolive Co CL reported strong top and bottom line growth, with organic sales growth accelerating from the previous quarter.Emerging markets led sales growth, with significant contributions from regions like Asia Pacific and Latin America.The company is investing in innovation, data, analytics, digital, and AI to enhance capabilities and drive market share improvement.Colgate-Palmolive Co (CL) announced a strategic growth and productivity program with an annualized savings target of $200 million to $300 million, focusing on 2027 and 2028.The Hill's Pet Nutrition segment showed impressive performance, with solid organic growth and strong execution in innovation and market share gains. Negative Points Significant increases in raw material and packaging costs have led to a reduced expectation for gross margin for the year.North America continues to lag in volume/mix, with interventions in place but requiring time for improvement.The company faces a challenging cost inflation environment, with an additional $300 million impact from raw materials and logistics.Gross margins are expected to be pressured due to higher raw material costs and tariffs, particularly impacting North America.The company is navigating a competitive environment with increased couponing and promotional activities from competitors. Q & A Highlights Q: Noel, can you discuss the volume mix, particularly the strong results in emerging markets in Q1, and the sustainability of this volume strength? Also, what are the plans for North America, which lagged in Q1?
A: Noel Wallace, CEO: We're pleased with the acceleration of volume growth, especially in emerging markets like Asia Pacific. Our interventions in the Hawley & Hazel business are paying off, though the category remains sluggish in China. In North America, we're implementing a strategy reset with brand interventions, innovation, and better execution. We expect improvement as new products and shelf resets take effect.
Q: Can you provide more color on the cost inflation embedded in your guidance, and the assumptions regarding crude oil and potential offsets?
A: Noel Wallace, CEO: We've assumed $300 million in additional raw materials, with oil at around $110. It's crucial for our operating units to plan for this inflationary environment. Stan Sutula, CFO: The $300 million impact is two-thirds raw materials and one-third logistics, with significant increases in oil byproducts and logistics costs. We're offsetting this through RGM productivity and maintaining our earnings guidance.
Q: You maintained your top and bottom line guidance despite gross margin pressures. Can you elaborate on the flexibility you have to deliver on the bottom line?
A: Noel Wallace, CEO: Our guidance reflects increased volatility, but we remain confident in our earnings range. We're committed to offsetting cost pressures through RGM efforts, premium innovation, and productivity initiatives. Stan Sutula, CFO: Our regular productivity program will help drive efficiency across the P&L, impacting both cost and SG&A.
Q: Can you discuss the performance and outlook for the APAC region, particularly India and China?
A: Noel Wallace, CEO: Asia Pacific showed strong growth, driven by China and India. We're seeing improvements in the Hawley & Hazel business and strong execution in omnichannel platforms. The Colgate business in China delivered mid-single-digit growth in a challenging market. Other markets like the Philippines and Thailand also performed well.
Q: How is the Latin America region performing, and do you expect the momentum to continue?
A: Noel Wallace, CEO: Latin America is executing well, with strong growth in Mexico and Brazil. Their omni demand generation and RGM efforts are best-in-class. We're focusing on innovation across all price points, which should drive continued growth. We expect emerging markets to remain a key growth driver.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Colgate-Palmolive remains a Buy, supported by resilient fundamentals, an attractive and still sustainable dividend yield while they hold the Dividend King status, and prudent valuation amid macro and geopolitical headwinds. CL posted solid Q1 results, with 8.4% net sales growth, robust free cash flow, and reaffirmed 2026 sales and EPS growth guidance despite Iran-driven margin pressures. Rising input and logistics costs, driven by the Iran conflict, are expected to pressure gross margins, but CL's strong cash flows support ongoing shareholder returns.
Colgate-Palmolive (NYSE:CL | CL Price Prediction) stock picked up a fresh price target raise from JPMorgan on Monday, May 4, with the firm lifting its target to $96 from $95 while maintaining its Overweight rating. The thesis is straightforward: a higher share of sales from faster-growing emerging markets positions Colgate to outperform consumer staples peers tilted toward developed markets.
The move follows a strong Q1 2026 print and lands as the defensive trade comes back into favor. For income-oriented investors, this analyst upgrade reinforces Colgate-Palmolive stock as a core staples holding rather than a tactical pick.
Ticker Company Firm Action Old Rating New Rating Old Target New Target CL Colgate-Palmolive JPMorgan Price target raised Overweight Overweight $95 $96 The Analyst’s Case JPMorgan asserts that Colgate-Palmolive is well positioned to continue outperforming its peers thanks to its emerging markets mix. Q1 2026 backed that view, with emerging markets organic sales growth of 6% and 4% volume growth.
Latin America led with net sales up 15% for Colgate-Palmolive, and Asia Pacific delivered the strongest organic growth at 6%. Adjusted EPS of $0.97 beat the $0.94 consensus, marking Colgate-Palmolive’s fourth consecutive EPS beat.
Company Snapshot Colgate-Palmolive is a global consumer staples giant operating in 200+ countries and territories, with brands including Colgate, Palmolive, Speed Stick, Irish Spring, Tom’s of Maine, and Hill’s Science Diet. Global toothpaste share sits at 41%.
The company carries a market cap of roughly $70 billion and is a dividend king with over 60 consecutive years of dividend increases. Colgate-Palmolive CEO Noel Wallace declared, “We delivered a strong start to 2026, with broad-based top and bottom-line growth.”
Why the Move Matters Now Colgate-Palmolive stock trades around $85.80 with a trailing P/E ratio of 33x and a forward P/E ratio of 23x. Shares are up 8% year to date (YTD), reflecting some appetite for defensive names amid AI-driven volatility.
The Colgate-Palmolive stock consensus analyst target sits at $95.53, putting JPMorgan slightly above Street average. Risks remain real: management revised full-year gross margin guidance down citing tariffs, and North America organic sales fell 2%.
What It Means for Your Portfolio For prudent investors, the price target raise reinforces Colgate-Palmolive’s role as a defensive anchor. The bull case rests on emerging markets growth, Hill’s Pet Nutrition (+7% revenue), pricing power, and a yield around 2%. Colgate-Palmolive’s dividend track record remains a key draw for income portfolios.
The bear case centers on foreign exchange (FX) translation risk, slowing staples volumes, tariff-driven margin pressure, and a rich valuation that limits multiple expansion. Should AI infrastructure leadership resume, the defensive trade could rotate out quickly.
Watch for whether Q2 2026 sustains broad-based organic growth across emerging market regions; also look for Hill’s momentum after the Prime100 acquisition, and monitor for FX trajectory. Those signals will determine whether JPMorgan’s incremental bullishness on Colgate-Palmolive stock proves directionally right.
Some companies that are strong investments aren't selling brands and products that I think about daily; they're just there in my everyday life, built into the flow of my day without me noticing. I'll reach for the same products every morning, not because I compared options, but because I've used them for so long it doesn't even feel like a decision anymore.
That quiet, almost invisible, presence is what makes these two consumer staples companies so powerful. They've become part of how people live, not just what they buy. And because of that, their shares are solid decade-long holds.
Image source: Getty Images.
Procter & Gamble owns your morning routine Before most people have made a single conscious decision in the morning, they have already used a Procter & Gamble (PG +0.79%) product -- probably several. The toothbrush next to the sink may be Oral-B. The shampoo might be Pantene or Head & Shoulders. Their deodorant is Old Spice or Secret. The laundry detergent they'll use later is Tide. None of that spending is the result of advertising working in real time. It is the result of years of habit formation that now runs on autopilot.
This is what makes Procter & Gamble something other than just a consumer goods company. It is a behavioral infrastructure company. Its products have become so deeply woven into people's daily routines that switching requires active effort, and most people, under most circumstances, have no reason or desire to make that effort. That psychological stickiness is a moat that no balance sheet can capture.
CFO Andre Schulten said it plainly during the company's most recent earnings call: "Consumers respond well if we give them a truly better proposition in the categories we are in because they see there is upside." That encapsulates my thesis in one sentence. P&G doesn't ask consumers to switch. It asks them to upgrade within brands they already trust -- from standard Tide to Tide Pods, from regular Pampers to Pampers Pure. The margin profile on those higher-tier products is meaningfully better for the company, and consumers make those moves with less psychological resistance because their relationships with the brands are already established.
What gives the next decade its particular shape for P&G is that it is now beginning that same process in earnest across Latin America, Southeast Asia, and Africa. These are markets where growing middle classes are moving from generic products to branded essentials for the first time. Procter & Gamble has done this before: It sold Tide to American households in the 1940s, established Pampers in Western Europe in the 1970s, and entered China in the 1990s.
The playbook is not new, and it has never failed to generate decades of compounding growth. Brand formation like this creates wealth. The honest truth with P&G is that it has grown large enough that its acceleration is structurally limited, and meanwhile, private-label alternatives continue improving to the point where they capture meaningful market share from value-sensitive households. Those are real pressures. But the consumer who buys a store-brand detergent during a tight economic stretch almost always returns to Tide when that stretch ends. That is not loyalty born of convenience. Procter & Gamble has been building that loyalty for 189 years.
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2. Colgate-Palmolive Colgate-Palmolive's (CL +0.07%) Colgate toothpaste is arguably present in more households worldwide than any other single-branded product. More ubiquitous than any fast-food logo, or virtually any technology you can name. In Brazil, India, Mexico, China, the Philippines, and throughout sub-Saharan Africa, Colgate is not one option among several -- it is the toothpaste you use.
Dentists in countries where the company has operated for decades were trained on Colgate clinical materials, learned to recommend Colgate products, and passed those recommendations on to their patients, who passed the habit to their children. The brand has embedded itself into the trusted authority network of oral health in a way that no competitor can replicate with a marketing budget -- because the trust was built not through advertising, but through professional endorsement over generations.
CEO Noel Wallace said during the company's most recent earnings call that growth was "led by emerging markets," where its brands hold the highest market share and the greatest scale advantages. The reason is not pricing or distribution alone -- it is that Colgate arrived in those markets early, built trust in communities where dental health awareness was just emerging, and became the default. That default status, once earned, is nearly permanent.
Morgan Stanley named Colgate-Palmolive its top consumer sector pick for 2026. The company also gained global toothpaste market share in the first quarter of 2026 -- a category where it already leads -- a result that suggests the brand is not defending old ground, but actively expanding.
Colgate-Palmolive delivered 8% sales growth in Q1 2026, but EPS declined 6%, warranting a conservative hold rating. I see organic growth of just 2.9%, with North America sales falling due to increased toothpaste competition and margin compression. FX tailwinds drove significant growth in Latin America, EMEA, and APAC, raising concerns about sustainability if currency trends reverse.
Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Ollie's Bargain Outlet (OLLI - Free Report) and Colgate-Palmolive (CL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Ollie's Bargain Outlet is sporting a Zacks Rank of #2 (Buy), while Colgate-Palmolive has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that OLLI likely has seen a stronger improvement to its earnings outlook than CL has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
OLLI currently has a forward P/E ratio of 16.78, while CL has a forward P/E of 22.83. We also note that OLLI has a PEG ratio of 1.32. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CL currently has a PEG ratio of 4.53.
Another notable valuation metric for OLLI is its P/B ratio of 2.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CL has a P/B of 144.35.
These are just a few of the metrics contributing to OLLI's Value grade of B and CL's Value grade of D.
OLLI has seen stronger estimate revision activity and sports more attractive valuation metrics than CL, so it seems like value investors will conclude that OLLI is the superior option right now.
CL's innovation strategy is driving market share gains as premium launches, pricing and science-based products support growth across oral care and pet nutrition.
NEW YORK--(BUSINESS WIRE)--Colgate-Palmolive (NYSE:CL) Chief Operating Officer, Americas, Shane Grant and Executive Vice President, M&A and Special Projects, John Faucher will participate in a fireside chat at the dbAccess Global Consumer Conference in Paris on Wednesday, June 3, 2026 at 8:45 am ET.
Investors may access a live webcast of this fireside chat on Colgate’s website at www.colgatepalmolive.com. For those unable to participate during the live webcast, a recorded version of the webcast will be made available through the Investor Center section of Colgate’s website.
* * *
Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, we sell our products in more than 200 countries and territories under brands such as Colgate, Palmolive, Ajax, Axion, Darlie, elmex, EltaMD, Fabuloso, Filorga, hello, Hill’s Prescription Diet, Hill’s Science Diet, Irish Spring, Lady Speed Stick, meridol, PCA SKIN, Prime100, Protex, Sanex, Softsoap, Sorriso, Soupline, Speed Stick, Suavitel and Tom’s of Maine. We are recognized for our leadership and innovation in promoting sustainability and community wellbeing, including our achievements in decreasing plastic waste and promoting recyclability, saving water and improving children’s oral health through our Colgate Bright Smiles, Bright Futures program, which has reached approximately two billion children and their families since 1991. For more information about Colgate-Palmolive and how we make more smiles, visit www.colgatepalmolive.com. CL-C
If you are looking for reliable dividend growth in consumer staples, your search should rarely be about headline yield. Your search should focus on the kind of steady, compounding cash flow that can endure across entire economic cycles.
Five names stand out right now, and they cover the full range of how a consumer goods dividend can compound over decades.
Image source: Getty Images.
1. Coca-Cola The Coca-Cola Company (KO +0.11%) approved its 64th consecutive annual dividend increase in February, lifting the annual payout to $2.12 per share from $2.04. The reason this dividend has held up for more than six decades is structural. Coca-Cola sells syrup concentrate to a global network of independent bottlers, which produces high gross margins, low capital intensity, and pricing power even when consumer demand softens.
The 2025 to 2026 stretch has also been one of the better periods for revenue per case, as international pricing has held up, and the company has continued to invest in away-from-home channels.
The honest risk with Coca-Cola is that its volume growth in developed markets is modest, and weight-loss drugs are starting to influence beverage consumption at the margin. Neither factor has really shown up in the numbers, but both deserve to be monitored.
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2. Procter & Gamble Procter & Gamble (PG +0.79%) declared its 69th consecutive annual dividend increase in April. The payout is supported by a portfolio of category-leading brands across laundry, personal care, beauty, baby, and grooming, and by some of the most predictable free cash flow in the consumer staples universe. P&G's dividend has been paid for more than 130 years, which is genuinely unusual.
The dividend appeal is its consistency. P&G generates enough free cash flow to cover the dividend, fund buybacks, and reinvest in product development, all in the same year, every year.
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3. Colgate-Palmolive Colgate-Palmolive Company (CL +0.07%) raised its quarterly dividend in March, continuing one of the longer payout-growth streaks in consumer staples. The reason this stock works for dividend-focused investors is that toothpaste and oral care are among the most recession-resistant consumer goods, and Colgate's emerging-market exposure provides volume growth that mature U.S. competitors do not.
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4. McDonald's McDonald's Corporation (MCD +0.01%) currently yields about 2.7%, with a long history of annual dividend increases and a payout supported by a franchise model that generates substantial royalty-based cash flow. The reason the dividend is so reliable is the structure. McDonald's collects rent and royalties from franchisees rather than running most stores itself, which makes the income stream look more like a real estate and royalty business than a restaurant business.
The risk worth naming is value perception. McDonald's has been in a multi-quarter rebuild of its value menu, and traffic among lower-income U.S. consumers has been pressured. The payout itself is well covered, but earnings growth depends on how the value rebuild progresses.
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5. Walmart Walmart (WMT +0.44%) extended its dividend-growth streak to 53 years in February, with the quarterly payout rising to $0.248 per share. The yield is modest, but the dividend growth profile and the underlying business are what make this work. Walmart's advertising business is generating roughly $6.4 billion in revenue, and the membership program (Walmart Plus) is scaling. Adjusted operating income grew 10.8% in the fourth quarter, while revenue grew 5.6%, indicating real operating leverage.
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How to think about the mix These five names aren't the highest-yielding consumer goods stocks, and that's my point. What each ticker offers instead is consistency. Each one has strong payout coverage, a long history of dividend growth, and the kind of stability that lets income investors actually plan around the cash flow for decades.
A common trap in dividend investing is getting distracted by headline yield. A 6% yield can look attractive until the payout gets cut. Meanwhile, a steady 2% yield from a long-established Dividend King that grows its dividend 6% to 8% a year can quietly compound into a far larger income stream over time. A Dividend King is a company that's grown its dividend payment for at least 50 consecutive years.
That's the profile these companies tend to fit. Each represents a different angle on the same core idea: durable cash generation, dominant market positions, and a long record of raising dividends across multiple cycles. Put together thoughtfully and held with patience, they're less about chasing today's income and more about building a dividend stream that grows steadily year after year.
Key Takeaways CL posts broad-based volume and pricing growth across most divisions and categories.Colgate sees strong momentum in the Asia Pacific and Latin America markets.CL continues using innovation-led pricing to support margins and consumer value. Colgate-Palmolive Company (CL - Free Report) is striving for a balance between volume and pricing, rather than relying solely on price increases to drive revenues. In the first quarter of fiscal 2026, the company highlighted that it witnessed improved volume performance, particularly within the Asia Pacific region. Excluding the impact from the private label pet food exit, the company achieved both volume and pricing growth across all four categories and in four of its five operating divisions, reflecting broad-based business momentum.
The company stated that industry-wide category volumes remain relatively sluggish globally, making the recent acceleration in volume growth particularly encouraging. Management highlighted that volume improvement compared with the fourth quarter of fiscal 2025 was broad-based, with growth observed across nearly all divisions and categories in the first quarter of fiscal 2026. This trend was strongest in emerging markets, which the company views as a primary growth engine. Management noted that the Asia Pacific region was a significant contributor to accelerating growth trends, while Latin America continued delivering solid volume performance and market share gains.
However, pricing remains a critical lever navigating the inflationary environment and maintaining pricing power remains a key priority across the business. Management highlighted that pricing actions continue to be important for protecting margin dollars and supporting category investment. The company also emphasized that future pricing initiatives will increasingly be supported by innovation and strong value propositions across multiple price points. Management expects innovation-led pricing opportunities to continue through the remainder of the year as it focuses on balancing pricing strategy with consumer value.
Overall, Colgate appears increasingly balanced between pricing and volume growth, with emerging market momentum, innovation-led demand and pricing discipline supporting sustainable revenue growth and margin protection.
Zacks Rundown for CLColgate’s shares have gained 11.7% in the past six months against the industry’s decline of 4.5%.
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From a valuation standpoint, CL trades at a forward price-to-earnings ratio of 23X, higher than the industry’s average of 17.68X. CL currently carries a Zacks Rank #4 (Sell).
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The Zacks Consensus Estimate for CL’s 2026 and 2027 earnings implies year-over-year growth of 3.5% and 5.6%, respectively.
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NEW YORK--(BUSINESS WIRE)--Colgate-Palmolive, a global leader in health and hygiene, today announced the launch of Serving Smiles, a new video-first podcast designed to tackle health misinformation and simplify wellness for Gen Z. Hosted by actor, singer and content creator Pressley Hosbach and award-winning advocate, actor and podcaster Madison Tevlin, the series brings expert-backed clarity to a generation overwhelmed by wellness trends and conflicting health advice that can be found on socia.
NYSE issues a pre-market daily advisory direct from the trading floor. NEW YORK, June 8, 2026 /PRNewswire/ -- The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor.
Colgate-Palmolive delivered solid Q1 results with 8.4% revenue growth and strong performance outside North America. CL's North American segment continues to underperform, with a 28% decline in operating profit and ongoing margin pressure from tariffs and freight costs. The SGPP productivity program is being expanded, targeting $200m–$300m in annual pretax savings by 2028 through supply chain and operational optimizations.
NEW YORK--(BUSINESS WIRE)--The Board of Directors of Colgate-Palmolive Company (NYSE:CL) today declared a quarterly cash dividend of $0.53 per common share, payable on August 14, 2026, to shareholders of record on July 20, 2026. The Company has paid uninterrupted dividends on its common stock since 1895. * * * Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Hom.
