12 Best Household Stocks to Buy According to Hedge Funds

2. Colgate-Palmolive Company (NYSE:CL)

Number of Hedge Fund Holders: 62

Colgate-Palmolive Company (NYSE:CL) manufactures and sells various products for the personal and home care markets and operates in two product segments: Oral, Personal, and Home Care, and Pet Nutrition. The Oral, Personal, and Home Care segment sells cleaning products worldwide. Its brand portfolio includes several reputable brands, including Colgate, Palmolive, Irish Spring, Sorriso, Protex, meridol, Axion, Sanex, and others.

The company reported strong operational results in fiscal Q4 2024, with gross margin rising 70 basis points to 60.3%. Colgate-Palmolive Company (NYSE:CL) also maintained its dominant position in the global toothpaste market with 41.4% and manual toothbrushes with 32.2% global market share.

On March 20, the company raised its quarterly common stock cash dividend to 52c per share, up from 50c per share, effective in H2 2025. The company has been paying uninterrupted dividends on its common stock since 1895. On March 14, JPMorgan analyst Andrea Teixeira raised the firm’s price target on Colgate-Palmolive Company (NYSE:CL) to $99 from $97 and kept an Overweight rating on the shares.

Diamond Hill Large Cap Strategy also expressed bullish sentiments on the stock, and stated the following regarding Colgate-Palmolive Company (NYSE:CL) in its Q4 2024 investor letter:

“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.”