5 Best Household and Personal Care Stocks To Buy

2. Colgate-Palmolive Company (NYSE:CL)

Number of Hedge Fund Holders: 61

Colgate-Palmolive Company (NYSE:CL) manufactures and sells consumer products worldwide, including toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, dishwashing detergents, fabric conditioners, household cleaners, and pet nutrition products. It is one of the premier household stocks to invest in. 

On May 1, Deutsche Bank raised the firm’s price target on Colgate-Palmolive Company (NYSE:CL) to $88 from $80 and reiterated a Buy rating on the shares following the Q1 results.

According to Insider Monkey’s fourth quarter database, 61 hedge funds were bullish on Colgate-Palmolive Company (NYSE:CL), compared to 57 funds in the prior quarter. Dan Loeb’s Third Point is the biggest stakeholder of the company, with 11.5 million shares worth $910 million. 

Third Point made the following comment about Colgate-Palmolive Company (NYSE:CL) in its Q4 2022 investor letter:

“Colgate-Palmolive Company (NYSE:CL) remains one of the firm’s largest equity positions. The company offers defensive growth at a reasonable valuation, and we continue to see the potential for shares to deliver attractive risk adjusted returns over the next several years.

Fourth Quarter results were disappointing. The company missed on gross margins, guided 2023 well below the Street, and took another large impairment charge on its portfolio of skin care brands. The price action on the day of the print (down 5%) was extreme and perhaps reflective of growing investor frustration that the company has failed to sustainably grow earnings over the past decade.

We believe some of this “miss” was beyond the company’s control and that Colgate is on the road to delivering more predictable results. Organic growth remains strong and we expect it to start translating into earnings growth as execution improves, margins recover, and external pressures calm down…” (Click here to read the full text)