Key statistics

Is CL a good stock to buy in 2026?

Colgate-Palmolive (CL) presents a mixed investment picture in 2026. While its discounted cash flow (DCF) suggests it is significantly undervalued at $116.11, offering 33.1% upside, its current P/E ratio of 33.53x remains elevated compared to the sector average of 20x. Analyst sentiment is moderately positive with 42.2% recommending a “Buy,” contributing to a “Hold” consensus and a modest 8.8% upside to the $94.9 price target.

2026 CL price scenarios

Based on analyst consensus of $94.9 from 45 analysts. Not a prediction by Alert Invest.

About Colgate-Palmolive Company (CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items.

Led by CEO Noel R. Wallace, Colgate-Palmolive Company, with its approximately 34,000 global employees, maintains its position as a dominant force in the Consumer Defensive sector. Its distinctive strengths lie in its deeply entrenched global brands and extensive distribution networks, making its products household staples worldwide.

CL competitive moat and business analysis

Colgate-Palmolive Company’s competitive moat is primarily built on its formidable portfolio of iconic global brands and extensive distribution channels. Products like Colgate toothpaste and Palmolive soaps are staples in millions of households, fostering strong brand loyalty and recurring revenue streams. The company’s impressive net margin of 10.04% underscores its pricing power and efficient operations, even in a competitive market. While specific ROE/ROIC figures are not available, the consistent profitability signals effective capital deployment and a robust business model.

The company’s revenue streams are diversified across two main segments: Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care segment, encompassing toothpastes, toothbrushes, soaps, and household cleaners, forms the bulk of its business and provides defensive characteristics due to the essential nature of these products. The Pet Nutrition segment, particularly through its Hill’s Pet Nutrition brand, offers a premium-focused, higher-growth avenue. Geographically, Colgate-Palmolive benefits from a strong global presence, with significant operations across North America, Latin America, Europe, Asia, and Africa, balancing regional economic fluctuations.

Observing the moat’s trend, Colgate-Palmolive has demonstrated a modest but consistent revenue growth of 1.4% year-over-year. This reflects the mature nature of the consumer staples market, where growth is often driven by incremental innovation, market share gains, and strategic acquisitions rather than explosive expansion. The company continues to invest in R&D to enhance product formulations and packaging, adapting to evolving consumer demands for sustainability and efficacy. Despite the absence of specific transcript quotes, management commentary typically emphasizes strategic pricing, premiumization efforts, and disciplined cost management to sustain profitability and defend its market position against competitors.

When considering CL stock, it’s insightful to compare its position against key industry peers. While Colgate-Palmolive enjoys a dominant brand presence, other players in the Consumer Defensive sector offer different profiles. For instance, an analysis of CL vs CCEP (Coca-Cola Europacific Partners) would highlight differences in beverage vs. personal/household care markets. Comparing CL vs CHD (Church & Dwight) could reveal contrasting strategies in product diversification and growth drivers. Furthermore, examining CL vs CLX (The Clorox Company) would provide insights into varied approaches within the household and personal products segment, especially concerning innovation and market penetration strategies.

Colgate-Palmolive Company analyst rating

Based on 45 analysts. 42.2% rate CL Buy or Strong Buy.

With 42.2% of analysts rating CL stock as “Buy” or “Strong Buy”, this indicates a moderate level of confidence in the company’s future prospects within the Consumer Defensive sector. While this is a respectable figure for a mature company, the majority consensus remains “Hold,” suggesting analysts see the current price as largely reflecting its fair value.

Is CL undervalued or overvalued?

Assessing CL valuation reveals a nuanced picture. The stock’s P/E ratio stands at 33.53x, which is considerably higher than the sector average of 20x, indicating that the market may be pricing in significant future growth or stability for CL stock. This premium P/E suggests that, based on earnings multiples, Colgate-Palmolive might be considered overvalued relative to its industry peers.

However, a deeper look at the discounted cash flow (DCF) model tells a different story. The DCF fair value for CL is calculated at $116.11, implying a substantial 33.1% upside from the current price. This model suggests that despite its high P/E, the intrinsic value of CL stock could be considerably higher, leading value investors to ponder: is CL a good stock to buy at its current price, or does the P/E signal caution? The P/B ratio of 482.54x is exceptionally high, further complicating a straightforward valuation, while the P/S ratio of 3.36x appears more in line with fair value for a stable consumer staple.

CL financial health & key metrics

For value investors, analyzing CL stock’s financial health presents a mixed bag. The robust net margin of 10.04% and a strong Free Cash Flow (FCF) yield of 5.38% are compelling indicators of operational efficiency and cash generation. Furthermore, the Discounted Cash Flow (DCF) model points to the stock being significantly undervalued, suggesting a potential margin of safety. However, the relatively high debt-to-equity ratio of 54.99x and the slower revenue growth of 1.4% demand careful consideration, as they could impact future financial flexibility and growth prospects for CL stock.

Colgate-Palmolive Company earnings history & next report

Colgate-Palmolive Company reported EPS of $0.97, beating estimates by 2.86%. Next earnings: 2026-08-07 with EPS estimate of $0.97.

Investors should closely monitor the next earnings report scheduled for 2026-08-07, with an estimated EPS of $0.97. Key areas of focus will include organic sales growth across its core Oral, Personal and Home Care segments, as well as the performance of its Pet Nutrition division. Attention will also be paid to any updates on pricing strategies, cost management initiatives, and potential impacts from foreign exchange fluctuations, all of which will influence the future trajectory of CL stock.

CL daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

CL insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent CL analyst rating changes

Colgate-Palmolive Company stock news today

How does CL compare to its peers?

To gain a comprehensive understanding of CL stock’s market position and potential, it’s essential to evaluate its performance and characteristics relative to its direct competitors within the Consumer Defensive sector. This comparison provides valuable context for assessing CL’s strengths and weaknesses in a competitive landscape, helping investors decide if CL is a good stock compared to alternatives.

FAQ — Colgate-Palmolive Company (CL) stock