Margin Headwinds Prompt Argus to Downgrade Colgate (CL) Shares

Colgate-Palmolive Company (NYSE:CL) is included among the 15 Best Blue-Chip Stocks with Growing Dividends.

On December 11, Argus analyst Taylor Conrad downgraded Colgate-Palmolive Company (NYSE:CL) to Hold from Buy, citing mounting pressures on the company’s profitability. According to the firm, rising raw material costs and ongoing tariff headwinds have eroded margins, making the risk-reward less compelling at current levels. Argus that it would be open to upgrading the stock again if the volume trends stabilize and margins show clear signs of improvement, Conrad noted in a research update.

During its Q3 2025 earnings release, Colgate-Palmolive Company (NYSE:CL) reaffirmed its commitment to its long-term 2030 Strategy, pointing to the strength of its core brands and their positions in categories that continue to expand globally. The company also highlighted its broad international footprint, with nearly half of its business tied to faster-growing emerging markets, supported by a highly efficient global supply chain.

In addition, Colgate outlined progress on a revamped innovation approach, directing more resources toward science-based product development across all price points. The company said that investments in AI, predictive analytics, and automation were key tools to enhance efficiency and enable more personalized offerings at scale.

Colgate-Palmolive Company (NYSE:CL) updated its outlook for organic sales growth, saying full-year results are expected to track closely with year-to-date performance, implying roughly 1.2% growth. This forecast reflects a 70 basis point headwind from exiting private-label operations. Management also confirmed that its EPS guidance remains unchanged.

Colgate-Palmolive Company (NYSE:CL) is a global consumer products company that produces and markets everyday household staples, with a focus on oral, personal, and home care products.

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