Colgate (CL, $61.84) Lowers Full Year Earnings Guidance, Weighed Down by Raw Material Costs and Currency Headwinds
Colgate-Palmolive reported earnings per share of 74 cents for the fourth quarter, managing to edge past analysts’ expectation of 73 cents. However, the toothpaste maker experienced a -3% year-over-year decline in adjusted net income to $638 million. The company also lowered its projection for the full year profit, citing pressures from increasing raw material costs and dollar appreciation.
Apparently compelled by higher transportation/commodity costs to hike product prices in Brazil and Argentina, Colgate suffered lower demand from these regions. Keen on boosting advertising in fiscal 2019, the company still portends challenges from currency exchange rate uncertainties and higher raw material costs – headwinds that the firm expects would drag down earnings per share by a mid-single-digit for the year. This revelation is all the more a (negative) surprise due to analysts’ prior estimate of a 2.4 percent increase in earnings per share for the year (based on IBES data from Refinitiv).
Colgate reported net sales of $3.81 billion for the fourth quarter, which is -2.1% lower from the year-ago period. But it still beat estimates of $3.77 billion, (according to Refinitiv's IBES).
The company, which accounts 42% of the global toothpaste market, expects its net sales growth for 2019 to be flat to up low-single digits, compared with analysts’ estimate of a 0.1% decline.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CL sees its Stochastic Oscillator ascends from oversold territory
On August 24, 2026, the Stochastic Oscillator for CL moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 58 instances where the indicator left the oversold zone. In of the 58 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CL advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 18, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CL as a result. In of 67 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CL turned negative on August 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
CL moved below its 50-day moving average on August 27, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CL crossed bearishly below the 50-day moving average on August 24, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for CL entered a downward trend on August 28, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: CL's P/B Ratio (303.030) is very high in comparison to the industry average of (23.489). P/E Ratio (35.728) is within average values for comparable stocks, (57.090). Projected Growth (PEG Ratio) (1.748) is also within normal values, averaging (2.938). Dividend Yield (0.023) settles around the average of (0.033) among similar stocks. P/S Ratio (3.473) is also within normal values, averaging (2.721).
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General Information
a maker of oral, personal, and household products
Industry HouseholdPersonalCare
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