12 Best FMCG Stocks To Buy According to Hedge Funds

5. Colgate-Palmolive Company (NYSE:CL)

Number of Hedge Fund Holders: 54

Colgate-Palmolive Company (NYSE:CL) is an international producer of consumer staple products ranging from oral care, personal care, and home care, to pet nutrition. During the fiscal fourth quarter of 2024, the company delivered a revenue of $4.9 billion which was slightly lower than what it delivered in the same quarter last year and also missed the market expectation by $44.53 million. This led Stifel to lower the price target on the stock from $95 to $93, while the firm kept its Hold rating. However, Andrea Faria Teixeira from J.P. Morgan kept the Buy rating with the price target of $97.

On the bright side, Colgate-Palmolive Company (NYSE:CL) achieved over $20 billion in net sales for the fiscal year, which is one year ahead of its strategic timeline. The company was able to achieve this milestone due to six consecutive years of organic sales growth. Management has significantly increased advertising spending by almost 15% and is also working on improving innovation capabilities. As a result, the incremental sales from innovations have grown by 45% from 2021 to 2024. Looking ahead, Colgate-Palmolive Company (NYSE:CL), expects net sales to be roughly flat for the current year, mainly due to the foreign exchange impact. However, management expects organic sales growth to be within its long-term targeted range of 3% to 5%. It is one of the best FMCG stocks to buy according to hedge funds.