12 Best FMCG Stocks to Buy According to Billionaires

7. Colgate-Palmolive Company (NYSE:CL)

Number of Billionaire Investors: 13

Number of Hedge Fund Holders: 62

Colgate-Palmolive Company (NYSE:CL) is engaged in manufacturing and selling consumer products. TD Cowen analyst Robert Moskow maintained the bullish stance on the company’s stock, providing a “Buy” rating. The analyst’s rating is backed by factors demonstrating its potential despite recent challenges. As per the analyst, Colgate-Palmolive Company (NYSE:CL)’s healthy market share gains reinforced the confidence in business momentum. Despite North American organic sales declining marginally, the favourable outlook on volume trends as well as potential improvements in liquid hand soap, toothpaste, and dish soap offer optimism, says Moskow.

Colgate-Palmolive Company (NYSE:CL)’s broad portfolio of well-established brands continues to command strong consumer loyalty, offering a robust foundation for growth. The company’s investment in brand equity and marketing supported it in maintaining its position as a trusted name when it comes to household and personal care products. An emphasis on innovation enables Colgate-Palmolive Company (NYSE:CL) to remain ahead of market trends and cater to evolving consumer needs.

Also, it has agreed to acquire Care TopCo Pty Ltd, owner of the Prime100 pet food brand. The acquisition gives the company’s Hill’s Pet Nutrition division an entry into the fast-growing fresh pet food category.  Diamond Hill Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just two new positions in Q4: Colgate-Palmolive Company (NYSE:CL) and the aforementioned lululemon.

Colgate-Palmolive is a high-quality business with leading positions in oral care, home products and pet nutrition. Historically, the company has allocated capital well, and it produces significant free cash flows. Shares were pressured in Q4 primarily, we believe, in sympathy with near-term macroeconomic concerns rather than any fundamental issues at the business. We consequently capitalized on the underperformance and compelling valuation to start a position.”