Retirement Stock Portfolio: 10 Consumer Stocks To Buy

4. Colgate-Palmolive Company (NYSE:CL)

Dividend Yield: 2.12%

Number of Hedge Fund Holders: 54

Colgate-Palmolive Company (NYSE:CL), a multinational corporation headquartered on Park Avenue in Midtown Manhattan, New York City, specializes in producing and distributing a wide array of household, healthcare, personal care, and veterinary products. The company has overhauled its innovation model, increased marketing investments, utilized its global reach across various price tiers, and expanded new capabilities across the organization to enhance brand strength and increase household penetration.

On October 25, the company reported its third-quarter 2024 earnings. The company’s net sales rose 2.4% year-over-year to $5 billion, while organic sales grew by an impressive 6.8%. In addition, net income increased to $737 million, or $0.90 per share, compared to $708 million, or $0.86 per share, in the prior year. Looking ahead, Colgate-Palmolive Company (NYSE:CL) anticipates full-year 2024 net sales growth between 3% and 5%, with organic sales expected to grow by 7% to 8%. The company also projects adjusted EPS growth of 10% to 11%, reflecting strong confidence in its ongoing performance.

Following these results, TD Cowen revised its outlook on Colgate-Palmolive Company (NYSE:CL), lowering the price target from $115 to $110 while maintaining a Buy rating. The firm noted that the reduced price target presents an appealing entry point for long-term investors, especially with an eye toward 2025. Despite the adjustment, the analysis underscores Colgate-Palmolive’s strong position in the consumer packaged goods (CPG) sector.

ClearBridge Investments mentioned Colgate-Palmolive Company (NYSE:CL) in its Q2 2024 investor letter. Here is what the firm said:

“Colgate-Palmolive, added to the portfolio in 2023, started outperforming materially toward the tail end of last year as growth, margin and market share momentum began to turn favorably, and that momentum has continued year to date as the stock has nicely outperformed the large cap staples group. The fundamental upside has been driven by a combination of healthy organic growth (with positive volumes), good gross margin progression, and strong re-investment spending supporting market share gains and future growth.”