Jim Cramer’s Game Plan: 23 Stocks to Watch

11. Colgate-Palmolive Company (NYSE:CL)

Number of Hedge Fund Holders: 52

Cramer discussed Colgate-Palmolive Company (NYSE:CL), noting that the market has an excessive affection for the company.

“Finally on Friday, we got Colgate-Palmolive. And here’s one where I stand, it doesn’t even matter where I stand… It’s kind of an unnatural thing, frankly. The Street loves Colgate Palmolive. I think that the love is way overdone, but that does not matter. Colgate always wins. Kind of drives me crazy. I just want to find out what people really think that they love it so much, but it doesn’t matter. It’s inscrutable.”

Colgate-Palmolive (NYSE:CL) is a prominent manufacturer and seller of consumer products, offering a range of well-known brands including Colgate, Protex, Sanex, Meridol, Softlan, and Ajax. With a rich history of consistent performance, the company has an impressive 61 years of dividend increases, highlighted by a recent 4.2% rise in its quarterly dividend to $0.50, marking the 62nd consecutive annual increase. The dividend is payable on November 15 to shareholders of record on October 18 and the dividend yield is 2.01%, as of October 21.

In its second-quarter results, Colgate-Palmolive (NYSE:CL) achieved gross margin expansion for the fourth straight quarter, along with double-digit growth in operating profit, net income, and earnings per share. The company raised its guidance for organic sales and Base Business earnings per share for 2024, maintaining a net sales growth expectation of 2-5%.

The adjustment is owed to an increased organic sales growth outlook of 6-8%, up from the previous 5-7% forecast, despite anticipated foreign exchange challenges. Additionally, the company continues to expect double-digit growth in earnings per share on a GAAP basis, while the revised Base Business earnings per share growth is now expected to be between 8-11%, compared to earlier projections of mid to high-single-digit growth.