CL Should I Buy
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Colgate-Palmolive Co (CL) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 to invest. While the stock has shown positive price momentum and favorable analyst ratings, the company's recent financial performance, particularly the significant drop in net income and EPS, raises concerns. Additionally, insider selling and the lack of strong proprietary trading signals further suggest a cautious approach. Holding the stock or waiting for a better entry point would be more prudent.
The stock is currently in an overbought condition with an RSI of 84.998. The MACD is positive at 0.449 but contracting, indicating a potential slowdown in momentum. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading near its resistance level of 97.213, suggesting limited short-term upside.
Analysts have raised price targets, with several firms assigning Buy or Overweight ratings. The highest target is $105, indicating potential upside.
Consumer staples sector is gaining investor interest as a safe haven, which could benefit CL.
The stock has shown resilience and positive price momentum in recent trading sessions.
Insiders are selling heavily, with a 16109.01% increase in selling activity over the last month.
The company's Q4 financials showed a significant decline in net income (-105.01% YoY) and EPS (-105.56% YoY).
The stock is overbought based on RSI, and the MACD is contracting, signaling potential short-term weakness.
In Q4 2025, revenue increased by 5.76% YoY to $5.23 billion. However, net income dropped significantly 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), indicating challenges in profitability despite revenue growth.
Analysts are generally positive on CL, with multiple firms raising price targets recently. The highest target is $105, and the lowest is $88. Analysts cite strong Q4 performance, sequential improvement in EPS growth, and conservative 2026 guidance as reasons for optimism. However, some concerns about inflationary pricing in emerging markets remain.
