New York-based Colgate-Palmolive Company (CL) manufactures and sells consumer products and is a global leader in the oral care hygiene market. Valued at a market cap of $71.1 billion, the company’s business is focused on four core categories: oral care, personal care, pet nutrition, and home care. 

Shares of this oral care giant have massively lagged behind the broader market over the past 52 weeks. CL has gained 2.2% over this time frame, while the broader S&P 500 Index ($SPX) has soared 21.8%. Moreover, on a YTD basis, the stock is down nearly 4.9%, compared to SPX’s 2.7% rise.

Narrowing the focus, CL’s underperformance looks even more pronounced when compared to the Consumer Staples Select Sector SPDR Fund’s (XLP) 6% gain over the past 52 weeks and marginal return on a YTD basis. 

On Jan. 31, shares of CL plummeted 4.6% after its mixed Q4 earnings release. The company’s adjusted earnings of $0.91 per share increased 4.6% year-over-year and topped the Wall Street estimates by 2.2%. However, its revenue slightly declined from the year-ago quarter to $4.9 billion and marginally missed the forecasted figure. Lower sales in North America due to pricing pressures and challenges such as supply chain dependencies and economic volatility in emerging markets affected its results. However, on the brighter side, despite these challenges, the company managed to increase its gross profit margin by 70 bps, reflecting its effective cost-control strategies.

For fiscal 2025, CL projects flat net sales due to unfavorable currency exchange rates. However, the company expects organic sales growth of 3% to 5%. This outlook may have further disappointed investors, as it signals that growth could remain weak in the low single-digit range.

For the current fiscal year, ending in December 2025, analysts expect CL’s EPS to grow 3.6% year over year to $3.73. The company’s earnings surprise history is promising. It beat the Wall Street estimates in each of the last four quarters. 

Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 11 “Strong Buy,” two “Moderate Buy,” eight “Hold,” and two “Strong Sell” ratings. 

On Feb. 3, Evercore ISI maintained an “Outperform” rating on Colgate-Palmolive and lowered its price target to $100, which indicates a 15.6% potential upside from the current levels. 

The mean price target of $101 represents a 16.8% upside from CL’s current price levels, while the Street-high price target of $120 suggests an upside potential of 38.7%.