CL Stock Today: January 10 – Morgan Stanley Top Pick vs Valuation Risk
CL stock is in focus today as we weigh a fresh bull call against valuation concerns. Morgan Stanley named CL a 2026 top pick with an overweight rating and an $87 target, while others flag a premium to fair value. Shares recently traded near $76.93 with a 22.8x P/E and a 2.5% dividend yield. With Q4 results due January 30, investors want clarity on organic sales growth, pricing power, and 2026 earnings outlook. We break down the setup for CL stock and the near-term trading drivers.
Why Wall Street is leaning bullish into 2026
Morgan Stanley reiterated an overweight on CL stock and named it a top pick for 2026 with an $87 price target, citing resilient demand and margin expansion potential. Street sentiment is constructive, with 5 Buy ratings and a ~$88.27 consensus target, plus a $96 high and $82 low. See Morgan Stanley’s case via Investopedia for context source.
Near term, CL stock trades into the January 30 Q4 print, where guidance and commentary on 2026 organic growth are key. Reacceleration hinges on price mix, share gains in oral care, and Hill’s Pet Nutrition. Input cost relief and productivity could support margins. Clear targets on advertising, innovation, and emerging-market growth would help justify multiple support into the 2026 earnings outlook.
Valuation: premium or just quality pricing?
Simply Wall St argues CL stock trades at a premium, noting 22.4x versus an 18.8x “Fair Ratio.” On trailing figures, P/E sits near 22.8x and price-to-sales about 3.25x, against a 2.54% dividend yield. Read the valuation take carried on Yahoo Finance source. Bulls say a durable franchise and visibility into cash flows can support a higher multiple.
Quality metrics are strong: ROIC around 27.7% and solid free cash flow. Risks include high leverage, with debt-to-equity near 9.84, and liquidity below 1.0 on the current ratio. For CL stock to sustain a premium, investors will want evidence of steady organic growth, stable pricing, and continued cost discipline through 2026.
What today’s tape and trend say
CL stock recently traded at $76.93 after a range of $75.96 to $77.23, below its 200-day average near $84.94 and close to the lower Bollinger Band at ~$76.37. The 50-day average is ~$78.41. YTD performance shows about -13.34%. Average true range near 1.45 suggests moderate daily swings. Support sits near $75 to $76, with resistance around $78.50 and $82.
Momentum is mixed. RSI near 61 leans positive, yet CCI above 100 flags short-term overbought for CL stock. ADX near 16 signals no strong trend. MACD is slightly positive. A close back above the 50-day could improve tone, while a decisive break below the lower band might invite tests toward recent lows.
2026 earnings outlook and catalysts to watch
TTM EPS is about 3.57 with 2024 EPS growth near 27%, supported by gross margin around 60%. Dividend per share is $2.06 with a ~62% payout. CL stock’s premium will depend on visibility into 2026 earnings outlook, including pricing, mix, and productivity gains. Consistent free cash flow and targeted buybacks could help offset valuation concerns.
For the Q4 call, focus on organic sales growth guidance, Hill’s Pet Nutrition momentum, pricing elasticity, promotion cadence, and FX impacts. Watch cost inflation commentary, capex plans, and brand investment levels. Clear targets and a credible 2026 roadmap could be a near-term catalyst for CL stock into the spring setup.
Final Thoughts
Here is our balanced take on CL stock. The bull case rests on category leadership in oral care, a growing pet nutrition arm, easing input costs, and solid free cash flow. Morgan Stanley’s overweight and $87 target align with a broader Buy skew and an ~$88 consensus. The bear case focuses on valuation, with P/E near 22 to 23 times and leverage that leaves less room for error. The January 30 report is the key near-term event. We would track organic growth guidance, pricing durability, and margin commentary. For traders, nearby levels around $75 to $76 look important support, while $78.50 and $82 are resistance zones. Manage risk and let the 2026 guide set the next trend.
FAQs
Is CL stock a buy right now?
Opinions differ. Bulls cite strong brands, margin momentum, and a growing pet nutrition business. Bears point to a premium multiple and high leverage. With earnings on January 30, many investors may wait for guidance on organic sales and 2026 targets. Price action around $75 to $78 could shape near-term risk-reward.
What is Morgan Stanley’s view and target on CL stock?
Morgan Stanley keeps an overweight on CL stock and named it a top pick for 2026 with an $87 target, focusing on resilient demand, pricing, and margin expansion potential. That lines up with a broader Buy skew and roughly $88 consensus. The January 30 update will be key to support this view into 2026.
Why do some analysts flag valuation risk for CL stock?
Some models say CL stock trades above fair value, with P/E near 22 to 23 times versus an 18.8x fair ratio. Supporters argue quality and cash flow deserve a premium. Skeptics note high leverage and liquidity below 1, which reduce flexibility if growth or pricing softens in 2026.
What are the key dates for CL stock in January 2026?
CL stock’s critical near-term date is January 30, when Colgate-Palmolive reports Q4 results and provides guidance. Investors will scrutinize organic sales, pricing, cost inflation, and cash returns. The commentary on 2026 growth and margins could be the main driver for the stock’s next move.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
