Monday's Underperforming Sectors: Consumer Goods and Services
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 22 2025
0mins
Source: NASDAQ.COM
Consumer Products Sector Performance: The Consumer Products sector is the worst performer, down 0.6%, with Archer Daniels Midland Co. (ADM) and Church & Dwight Co Inc (CHD) showing significant losses of 4.0% and 3.7%, respectively. The iShares U.S. Consumer Goods ETF (IYK) is down 0.9% for the day but up 5.16% year-to-date.
Services Sector Performance: The Services sector also shows a 0.6% loss, led by Kenvue Inc (KVUE) and Lennar Corp (LEN) with losses of 6.5% and 4.2%. The iShares U.S. Consumer Services ETF (IYC) is down 0.2% on the day but up 10.10% year-to-date.
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Analyst Views on CHD
Wall Street analysts forecast CHD stock price to rise
16 Analyst Rating
10 Buy
4 Hold
2 Sell
Moderate Buy
Current: 97.450
Low
82.00
Averages
98.71
High
114.00
Current: 97.450
Low
82.00
Averages
98.71
High
114.00
About CHD
Church & Dwight Co., Inc. is a producer of sodium bicarbonate. It develops, manufactures and markets a range of consumer household and personal care products and specialty products focused on animal nutrition, chemicals and commercial products. Its Consumer Domestic segment includes each of its seven power brands, as well as other brands and household and personal care products. Its Consumer International segment markets a variety of personal care, household and over-the-counter products in international subsidiary markets, including Australia, Canada, France, Germany, Japan, Mexico, China and the United Kingdom. Its Specialty Products Division (SPD) segment focuses on sales to businesses and participates in three product areas: animal nutrition, specialty chemicals and commercial and professional. Its brands include ARM & HAMMER, TROJAN, OXICLEAN, FIRST RESPONSE, NAIR, ORAJEL, XTRA, BATISTE, WATERPIK, ZICAM, THERABREATH, HERO, TOUCHLAND, and Miss Mouth’s Messy Eater, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Stock Performance: As of July 3, Colgate-Palmolive's stock has risen 20.4% year-to-date, showcasing its robust market competitiveness and attractiveness to investors within the household and personal care products sector.
- Stable Dividend Yield: Colgate-Palmolive has paid uninterrupted dividends since 1895 and has increased its payout for 63 consecutive years, currently offering a dividend yield of 2.24%, appealing to investors seeking stable passive income despite its relatively high stock price.
- Sales Growth Forecast: The company anticipates net sales growth of 2% to 6% and organic sales growth of 1% to 4% for 2026, demonstrating strong market adaptability and brand strength amid declining sales faced by many peers.
- Geographic Diversification Advantage: Colgate-Palmolive's sales outside North America are more than triple those within, particularly achieving double-digit growth in Latin America and EMEA, enhancing its resilience against U.S.-specific inflationary pressures.
See More
Colgate-Palmolive's Resilience Amid Market Challenges
- Sales Growth Outlook: Colgate-Palmolive is guiding for net sales growth of 2% to 6% in 2026, contrasting with peers facing declines, indicating the company's strong growth potential in a competitive market.
- Brand Portfolio Strength: The company boasts a robust brand portfolio, including Colgate and Palmolive, which has enabled it to navigate inflationary pressures and consumer resistance to price increases effectively, securing its leadership in the household and personal care industry.
- Dividend Stability: Colgate-Palmolive has paid uninterrupted dividends since 1895 and has increased its payout for 63 consecutive years, earning it the title of
See More
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- Increased Cost Pressure: Kimberly-Clark indicated during its Q1 fiscal 2026 earnings call that if oil prices average $100 per barrel in the second half of fiscal 2026, it could face an additional gross input cost of approximately $150-$170 million, reflecting the company's cautious outlook amid ongoing uncertainties.
- Sustained Productivity Gains: The company has consistently achieved a 6% gross productivity increase over the past two years, reaching this target again in Q1 of fiscal 2026, demonstrating its strong execution in cost management and operational efficiency, which helps mitigate rising input costs.
- Supply Chain Investment Progress: Kimberly-Clark is advancing its previously announced $2 billion investment in its North American supply chain as planned, aimed at supporting long-term operational priorities, which will enhance the company's overall operational capabilities and market competitiveness.
- High Contract Coverage: Approximately 80% of Kimberly-Clark's overall cost basket is covered through contractual arrangements and other cost management measures, which not only increases visibility into input costs but also supports a disciplined approach to cost management, ensuring the successful implementation of its long-term margin expansion plans.
See More
2026 Consumer Goods Market Analysis
- Church & Dwight's Strong Performance: Church & Dwight (CHD) achieved a 5% organic sales growth in Q1 2026, surpassing the 3% forecast, indicating the company's ability to navigate inflation through volume growth rather than price increases, thereby enhancing its market competitiveness.
- Keurig Dr Pepper's Growth Potential: Despite a nearly 29% decline from its 2025 peak, Keurig Dr Pepper (KDP) expects its energy drink portfolio to generate over $1 billion in annual retail sales, showcasing strong market demand and growth potential.
- Kenvue's Merger Prospects: Kenvue (KVUE) reported an 8.4% growth in its skin health and beauty division in Q1 2026, with quarterly sales reaching $1 billion, and the anticipated merger with Kimberly-Clark (KMB) is expected to further strengthen its market position and pricing power.
- Robust Investment Amid Market Uncertainty: In an uncertain market, these three companies provide a stable business foundation, making them suitable for investors looking to allocate $1,000 during turbulent times for long-term growth.
See More
Church & Dwight's Growth Strategy Amid Inflation
- Stable Sales Growth: Church & Dwight achieved a 5% organic sales growth in Q1 2026, surpassing the 3% forecast, demonstrating its growth strategy focused on volume rather than price increases, which enhances its competitive edge in an inflationary environment.
- Acquisition to Expand Market Share: The company acquired the fast-growing stain-removal brand Miss Mouth's Messy Eater for $325 million, continuing its decade-long acquisition strategy aimed at expanding market share without increasing leverage, thereby solidifying its position in the consumer goods market.
- Energy Drink Portfolio Growth: Keurig Dr Pepper's energy drink portfolio is expected to exceed $1 billion in annual retail sales, and despite a 29% decline in stock price, its low double-digit adjusted earnings growth forecast indicates potential in the youth market, boosting investor confidence.
- Strong Performance in Beauty Health Segment: Kenvue's skin health and beauty division grew 8.4% in Q1 2026, reaching $1 billion in quarterly sales, reflecting stable consumer demand amid economic uncertainty, with the anticipated merger with Kimberly-Clark expected to further enhance market competitiveness.
See More
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- Quality Stock Recommendations: Analyst Chen Luo from Bank of America highlights Yum China as a compelling buy opportunity despite a 10% drop in 2026, attributing the weakness to liquidity rather than fundamentals, with positive same-store sales growth indicating financial soundness.
- Aramark's Market Advantage: Analyst Curtis Nagle notes that Aramark has established a first-mover advantage with its Nexus platform launch, which is expected to generate several hundred million in revenue, positioning the company for significant earnings upside from data center buildouts, with shares up nearly 45% in 2026.
- Bath & Body Works' Successful Turnaround: Analyst Lorraine Hutchinson emphasizes that management's effective strategies are driving brand transformation, particularly through Amazon partnerships that attract customers willing to pay more for convenience, despite a 13% stock decline this year, sales and margins are expected to stabilize.
- Growth Potential for Church & Dwight: Analysts see Church & Dwight as having a compelling risk/reward setup due to long-term volume improvements and market share gains, with 36% exposure to value products mitigating private label risks, and potential for tuck-in M&A to enhance market position.
See More
