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.
Momentum Indicator for CL turns negative, indicating new downward trend
CL saw its Momentum Indicator move below the 0 level on March 03, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 71 similar instances where the indicator turned negative. In of the 71 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CL moved out of overbought territory on March 02, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for CL turned negative on February 19, 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 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The 50-day moving average for CL moved above the 200-day moving average on February 17, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CL advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
CL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 274 cases where CL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 steady price growth. CL’s price grows at a higher 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 92, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 (1428.571) is very high in comparison to the industry average of (26.326). P/E Ratio (35.574) is within average values for comparable stocks, (60.439). Projected Growth (PEG Ratio) (3.604) is also within normal values, averaging (2.543). Dividend Yield (0.022) settles around the average of (0.035) among similar stocks. P/S Ratio (3.723) is also within normal values, averaging (3.544).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a maker of oral, personal, and household products
Industry HouseholdPersonalCare
Advertisement