CL Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Colgate-Palmolive Co is not a strong buy at this moment for a beginner, long-term investor with $50,000-$100,000 available for investment. The stock's recent financial performance, insider selling trends, and cautious analyst sentiment suggest limited upside potential in the near term. While the company has a strong brand and market presence, current macroeconomic pressures and rising input costs present significant challenges. A 'hold' position is recommended until clearer positive catalysts emerge.
The technical indicators are mixed. The MACD is positive but contracting, suggesting weakening momentum. The RSI is neutral at 37.782, and moving averages are converging, indicating no clear trend. The stock is trading near its support level (S1: 83.014), with resistance levels at R1: 85.918 and R2: 86.814.
The company has a durable core franchise and is making long-term investments, as noted by Deutsche Bank. Additionally, the stock has a 4.13% chance of increasing in the next month based on historical patterns.
Insiders are selling heavily, with a 20884.53% increase in selling activity over the last month. Analysts have broadly lowered price targets, citing inflationary pressures and rising input costs. The company's Q4 2025 financials showed a significant drop in net income (-105.01% YoY) and EPS (-105.56% YoY). Rising oil prices and trade tensions with China could further pressure margins.
In Q4 2025, revenue increased by 5.76% YoY to $5.23 billion, but net income dropped to -$37 million (-105.01% YoY), and EPS fell to -$0.05 (-105.56% YoY). Gross margin slightly declined to 60.15% (-0.25% YoY). The company is facing challenges from rising input costs and inflation.
Analyst sentiment is cautious. Barclays, Wells Fargo, and Piper Sandler lowered price targets and highlighted concerns about rising costs and inflation. BofA and RBC Capital maintain Buy and Outperform ratings but adjusted targets downward. Deutsche Bank upgraded the stock to Buy, citing long-term investments and resilience, but this is an outlier among generally cautious views.
