Investopedia Markets News (all except PF)

Alex Wroblewski / Bloomberg / Getty Images, ALLISON ROBBERT / AFP / Getty Images

Intel's stock is getting a big boost from President Trump's show of support

Key Takeaways

• President Trump said he had a "great meeting" with Intel CEO Lip-Bu Tan, sending shares of the chipmaker soaring Friday.
• Trump said the government is "proud" to be a major Intel shareholder after taking a 10% stake in the chipmaker last year.

Intel's stock hit its highest point in nearly two years Friday, thanks to a social media post.

The chipmaker's stock was up nearly 10% in recent trading, making it one of the best-performing stocks in the S&P 500 Friday after President Trump praised Intel (INTC) CEO Lip-Bu Tan on social media.

"I just finished a great meeting with the very successful Intel CEO, Lip-Bu Tan," Trump said in a Truth Social post Thursday, and that the U.S. government is "proud" to be an Intel shareholder.

Just a few months earlier, Trump had pushed for Lip-Bu Tan to resign amid concerns about Tan's stakes in Chinese companies. However, Trump changed his tune just days later after meeting with the CEO in August, and brokered a deal that saw the U.S. government take a 10% stake in the chipmaker.

Why This Matters to Investors

Intel's stock has gotten a big boost from Trump's show of support, though it remains well off its historical highs as the embattled chipmaker works to convince investors of a sustainable turnaround in its business.

A high-profile partnership with Nvidia (NVDA) followed not long after the government announced its stake, helped lift Intel's stock in the second half of last year, along with rumors about potential new customers. The shares nearly doubled in value last year, with most of those gains coming between early August and December.

Intel's recent gains have also made the stock one of the top performers in the S&P 500 to start the year, with shares adding close to one-quarter of their value in January so far.

A number of other semiconductor stocks followed Intel higher Friday, including Broadcom (AVGO), Micron Technology (MU), and Advanced Micro Devices (AMD), contributing to a broader market rally that pushed the S&P 500 to a new high.

Timothy A. Clary / AFP via Getty Images

The S&P 600 and the Russell 2000 have outpaced the broader market so far in 2026.

Key Takeaways

• The Russell 2000 and the S&P 600 have risen more than 4% in the first few trading days of 2026.
• A BofA Global Research screen turned up 30 stocks with 12-month price targets that imply average implied upside of almost 30%.

The stock market's underdogs may be ready to lead the pack.

Small-caps—generally, companies with market capitalizations between about $250 million and $2 billion—are poised to outpace their larger peers this year, Wall Street analysts say. The group's early 2026 outperformance supports that view: The S&P 600 and the Russell 2000, benchmark indexes for that category, have risen more than 4% year-to-date, outpacing the broader market.

This may sound familiar. Market strategists have asserted that smaller companies were due to trounce their larger peers time and time again in recent years—then seen them struggle to do so. This year, experts see the stars aligning to support a long-awaited boost for the category: earnings are set to rebound, monetary policy is more accommodative, and there's the possibility that some tariffs are taken off the table.

WHY THIS MATTERS TO YOU

Large-cap stocks have produced outsize returns in recent years. Some strategists have been forecasting a shift, with gains spread out across more of the market.

"Earnings outperformance should drive small caps to lead," wrote Jill Carey Hall, Bank of America's head of U.S. small- and mid-cap strategy, last month.

In a follow-up report published Friday, she offered a list of 30 "smid-cap" stocks whose 12-month price targets imply average upside of almost 30%.

Hall said that about 90% of the stocks on the list saw upbeat consensus earnings-per-share revisions over the last three months, with median growth projections for the next 12 months at 23%.

Separately, the bank's economists expect three rate cuts between now and the end of the year; lower rates are generally viewed as good for the group, because they tend to carry more debt than larger companies, meaning they are poised to benefit when interest rates and related expenses fall, boosting bottom lines.

The bank's best ideas for the size segment includes airline operator Alaska Air Group (ALK), shoemaker Birkenstock (BIRK), educational tech company Duolingo (DUOL), makeup and skincare purveyor e.l.f. Beauty (ELF), beverage shop Vita Coco (COCO), and home goods e-commerce retailer Wayfair (W).

Michael Nagle / Bloomberg via Getty Images

Goldman Sachs thinks fourth-quarter earnings will generate more volatility than Wall Street expects.

Key Takeaways

• Goldman Sachs strategists expect post-earnings volatility to exceed what's currently being priced into options.
• They argue options traders are underestimating the potential upside for stocks including Meta, UnitedHealth Group, and Robinhood, which they expect to beat earnings expectations.
• Southwest Airlines and Texas Instruments are among the stocks that could decline more than traders expect following their quarterly reports.

Earnings season is around the corner. Goldman Sachs' analysts have ideas about how to trade it.

Options pricing suggests traders expect the average S&P 500 stock to move up or down 4.5% after earnings, near the lowest level of implied volatility in the last 20 years, according to Goldman. Just two quarters ago the average S&P 500 stock moved 5.4% on earnings, their highest volatility since 2009.

That disparity likely reflects expectations for a low-volatility earnings season, Goldman's analysts wrote. "But we believe the fundamental drivers of earnings volatility remain,” they said.

Why This Matters

Earnings reports are often stock-moving events that can shake or bolster an investor's faith in a company. Investors can use options strategies to reduce the cost of either augmenting or closing a position after earnings.

At the sector level, Goldman sees the most opportunity for post-earnings volatility in utilities, healthcare, materials, and industrials stocks. Utilities in particular have been abnormally volatile in recent quarters. Volatility has declined in most other sectors, including tech, over the past year. 

Goldman sees good reason to expect more upside than downside this coming earnings season. Goldman’s S&P 500 earnings estimates rose 5%, and their price target for the index increased 8% over the past three months, but the index itself rose just 3%, suggesting "improvement in fundamentals has outpaced the rise in stock prices."

Individual investors were aggressive buyers of single stocks and ETFs over those three months, which the analysts called “a positive for forward equity performance.” 

To identify what they believe to be the best opportunities for investors heading into earnings season, Goldman analysts identified 25 stocks on which they hold “out-of-consensus" earnings views—meaning they’re more optimistic or pessimistic than those of the average Wall Street analyst—and see the most potential for traders to profit from options strategies. 

“Buy single stock options to position for big earnings-day volatility this quarter,” Goldman wrote.

The biggest names in Goldman’s list of companies whose earnings are likely to surprise to the upside are Meta Platforms (META), UnitedHealth Group (UNH), Arista Networks (ANET), and Robinhood (HOOD). Investors could benefit from buying just out-of-the-money call options in these names if earnings are as strong as Goldman’s analysts expect. 

On the flip side, Goldman expects margin pressure at Texas Instruments (TXN) and Southwest Airlines (LUV) to weigh on their stocks this earnings season. If that plays out, traders could profit from buying slightly out-of-the money put options. 

Nicolas Economou / NurPhoto / Getty Images

Meta unveiled new partnerships with nuclear energy companies to power its AI efforts

Key Takeaways

• Meta on Friday announced deals with a trio of nuclear energy companies to power its data centers.
• Vistra will provide energy from its current reactors, while startups Oklo and TerraPower will sell Meta power as they build reactors into the 2030s, the companies said.

Several nuclear energy stocks surged Friday morning thanks to new agreements with a Big Tech giant.

Facebook and Instagram parent Meta Platforms (META) said Friday it's reached agreements with nuclear energy provider Vistra Corp. (VST), along with startup Oklo (OKLO) and Bill Gates-backed TerraPower. The Vistra deal will provide power to Meta from its currently operating reactors, while the startup deals will help the younger companies build their smaller nuclear reactors. Meta expects the Oklo and TerraPower reactors to come online between 2030 and 2035, the company said.

In total, Meta expects to add 6.6 gigawatts of power capacity to its data center network by 2035. Financial terms of the deals were not disclosed in Friday's release.

Vistra and Oklo shares each surged close to 14% Friday morning. Other nuclear stocks, including NuScale Power (SMR), Constellation Energy (CEG), and Nano Nuclear Energy (NNE), also gained. Meta shares were little changed.

Why This Matters to You

A number of Big Tech leaders have struck deals with nuclear and other clean energy companies in recent months to secure the power needed to run their AI data centers. Finding their own energy sources has been a priority for these firms, as data centers require large amounts of power and can drive up electricity costs in surrounding areas.

"We believe this news is incrementally positive for the entire nuclear energy industry, including OKLO, as it reaffirms the commitment from hyperscalers to start leveraging new energy sources to fuel the AI Revolution with power being the biggest headwind to the industry," Wedbush analysts wrote Friday.

Meta reached a deal last year to buy nuclear power from Constellation Energy, as a number of its peers also signed their own deals with nuclear providers and startups as they look to boost their AI capacity.

Al Drago/Bloomberg via Getty Images

2025 was one of the worst years for job growth in decades.

Key Takeaways

• The U.S. economy added 50,000 jobs in December, below expectations and fewer than the 56,000 in November.
  
• The unemployment rate fell to 4.4% from 4.5%, below expectations for 4.5%.
  
• Overall, the report showed the job market stayed in a low hiring, low firing limbo.
  

The job market improved by one measure but stayed relatively slow in December.

U.S. employers added 50,000 jobs in December and the unemployment rate edged down to 4.4% from a downwardly-revised 4.5% in November, the Bureau of Labor Statistics said Friday. The relatively slow job growth was slightly below the downwardly-revised 56,000 added in November, and was less than the 73,000 jobs forecasters had expected. Additionally, the unemployment rate was lower than the 4.5% forecast according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.

The unemployment rate fell for the first time since June, halting its recent upward trend. A downward revision lowered it to 4.5% instead of 4.6% in November as well. The rate in December was the same as September, although higher than the 4% unemployment rate at the beginning of the year.

Why This Matters

The lower-than-expected unemployment rate could ease the fears of officials on the Federal Reserve that the job market is in imminent danger of collapsing, and encourage them to hold rates steady in January.

The slow job growth and elevated unemployment rate continued to show the effects of President Donald Trump's economic policies, especially tariffs, which have discouraged hiring, and his crackdown on immigration, which has reduced the number of available workers. Job growth has slowed down significantly after averaging 147,000 workers per month through April of last year, when Trump announced his far-reaching "Liberation Day" tariffs on nearly every U.S. trading partner.

"Today’s messy report helps level-set expectations for 2026 for a low-hire, low-fire labor market that is still waiting for clearer signs of renewed momentum," Jake Krimmel, senior economist at Realtor.com, wrote in a commentary.

Job growth in the previous months was lower than previously thought: the bureau revised its job growth estimates for October and November by 76,000 total. The job market was shaken up in those months by the record-long government shutdown.

Officials at the Federal Reserve have cut the central bank's interest rate by three-quarters of a point since September in an effort to boost hiring and prevent the labor slowdown from becoming a wave of mass layoffs. Policymakers are slated to meet Jan. 27 and 29 to set monetary policy, and will likely scrutinize Friday's report when deciding whether to cut interest rates again.

The dip in the unemployment rate could encourage Fed officials to keep the rate steady. Odds for a January rate cut fell to 5% from 11% on Thursday according to the CME Group's FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

A Bad Year For Jobs, Especially Manufacturing

The manufacturing sector lost 8,000 jobs in December, the eighth month straight of job losses. The downturn is especially significant because Trump's tariffs, introduced eight months ago, were specifically intended to boost American manufacturing employment by protecting industry from overseas competition.

As it stands, 2025 was one of the worst years for job growth in decades. The economy added just 584,000 jobs the entire year, the fewest since 2003, excluding the Great Recession and the COVID-19 recession. What's more, economists expect that number to drop significantly or turn negative after the BLS makes its backwards-looking revisions next year to incorporate more up-to-date data.

"While jobs growth has not deteriorated solidly into negative territory, the fizzling of jobs growth to end 2025 dampens some hope that jobs growth was rebounding after a sluggish summer on the back of strong consumer spending," Daniel Zhao, chief economist at job site Glassdoor, wrote in a commentary.

News of the day for Jan. 9, 2026

Timothy A. Clary / AFP / Getty Images

Major stock indexes enter Friday's session on track to post gains for the week.

Stock futures are slightly higher this morning as investors prepare for key economic data and an important Supreme Court ruling; the jobs report, due this morning, is expected to show that hiring picked up slightly in December; some Supreme Court rulings are expected, including a possible decision on the case involving the Trump administration's sweeping tariffs; Glencore and Rio Tinto have restarted merger talks that would create the world's largest mining firm; and General Motors is the latest automaker to say it expects to take on billions in charges as the industry shifts focus away from electric vehicles. Here's what you need to know today.

Stock Futures Up Slightly as Traders Await Jobs Report, Scotus Ruling

Stock futures are ticking higher as investors await a pair of big pieces of news—the December jobs report from the Bureau of Labor Statistics and a potential Supreme Court ruling on tariffs. Futures tied to the Dow Jones Industrial Average and the S&P 500 were recently up 0.1% while Nasdaq futures added 0.2%. On Thursday, the major indexes ended mixed, as defense stocks surged after President Donald Trump said military spending is set to increase, while shares of data storage companies dropped after a recent rally. WTI crude oil futures were up nearly 1% this morning at around $58.25 per barrel, while gold futures rose 0.4% to $4,480 an ounce. Bitcoin was down slightly at $90,300, losing ground for the fourth straight day. The yield on the 10-year Treasury note, which affects a wide range of consumer borrowing costs, was holding steady at 4.18%.

December Jobs Report Due This Morning

The highly anticipated monthly employment report from the Bureau of Labor Statistics will provide an important snapshot on the health of the economy. Economists expect that the report, due at 8:30 am. ET, will show that U.S. employers added about 73,000 jobs last month, an uptick from the November figure. The unemployment rate for December is expected to come in at 4.5%, down from the previous month's 4.6%, which was the highest rate in four years. The U.S. labor market has weakened substantially over the past year, leading the Federal Reserve to cut interest rates at each of its last three policy meetings. The economy added 17,000 jobs per month on average between May and November, compared to 147,000 per month in the 12 months leading up to President Trump's April tariff plan announcement. Payroll and human resources firm ADP said earlier this week that private payrolls rose 41,000 in December, which was less than economists expected.

Potential Supreme Court Ruling on Tariffs Coming

Investors will also be closely watching news coming out of the Supreme Court. The high court is expected to release opinions starting at 10 a.m. ET, and there's a chance that the case involving the Trump administration's tariffs will be one of those rulings. Analysts are unsure of what the immediate impact of a ruling could be due to the range of possible outcomes—from a total strike-down of the tariffs to narrowing their scope, or simply allowing them to remain in place. The court heard arguments in November over whether Trump had the power to implement the tariffs by using a national emergency declaration, and seemed skeptical about if that was the case. A wide range of companies, including Costco Wholesale (COST), have sued the Trump administration to demand a refund for tariffs they have already paid to import products, arguing that the levies were illegal to begin with.

Glencore, Rio Tinto Restart Merger Talks to Create Mining Behemoth

Glencore and Rio Tinto (RIO) have restarted talks over a potential merger that would create the largest mining company in the world. The companies confirmed that talks were back on in separate statements, and said that no deal is certain. Rio Tinto, the larger of the two companies, has until Feb. 5 to announce intentions to acquire Glencore, or decide that it will not pursue an offer, the companies said. Previous talks between the two companies fell apart in late 2024 over concerns regarding the deal's valuation and what to do with Glencore's coal mines, according to CNBC. Rio Tinto's U.S.-listed shares were down 3% in recent premarket trading, while Glencore stock in London popped nearly 10% on the news.

GM Set to Take $6B Hit From Pivot Away From EVs

Another Detroit automotive giant is pivoting away from electric vehicles, and expects to pay a heavy price to do so. General Motors (GM) said in a regulatory filing on Thursday that it expects to take on $6 billion in impairment charges for the final quarter of 2025 as it shifts its priorities away from EVs. Last month, Ford (F) made a similar announcement, saying it would shift focus back to internal combustion and hybrid vehicles amid lagging consumer demand for EVs, and announcing $19.5 billion in charges through the end of 2027. GM executives will likely give more details on the result of its review of EV assets when the automaker reports fourth-quarter earnings on Jan. 27. GM shares were down 2% ahead of the opening bell Friday.

jean-marc payet / Getty Images

Labor productivity surged in the third quarter while wages didn't keep up with inflation.

Key Takeaways

• Worker productivity rose at its fastest pace in two years in the third quarter, while workers actually lost buying power because pay raises didn't keep up with inflation.
  
• Economists said productivity growth is the key to raising standards of living in the long run.
  
• Technology, including AI, promises to raise productivity, but it's an open question how much workers will benefit.
  

Labor productivity surged in the third quarter but paychecks didn't surge along with it.

That's according to a report Thursday from the Bureau of Labor Statistics, which found that labor productivity rose at a blistering annualized rate of 4.9%, the fastest since 2023. Meanwhile, hourly compensation decreased 0.2% in the quarter after taking inflation into account, leaving workers with less buying power overall despite being more productive.

Economists took the uptick in productivity as healthy for the long-term prospects of the economy. Generally, if workers are able to create more value with less labor due to advances in technology or other improvements, living standards can rise, and wages can increase without causing inflation.

"When workers are more productive, firms tend to enjoy increased profitability, which can provide them flexibility to absorb higher costs, reinvest in the business or lower selling prices. The current cycle's pace thus should help to allay concerns over inflation's recent persistence," economists at Wells Fargo Securities wrote in a commentary.

What This Means For The Economy

Higher productivity is the key to raising living standards, and allows wages to rise without inflation accelerating along with them over the long run.

Experts took the overall optimistic outlook with a teaspoon of salt. Productivity figures have vaulted up and down this year due to changes in government policy, and forecasters don't expect the 4.9% annual rate to be sustained.

The boost in productivity also suggested the goal of companies adopting artificial intelligence software—doing more work with fewer workers—is attainable even if it hasn't necessarily materialized yet.

"If productivity growth continues to accelerate due to tax cuts, deregulation, and technological advancements, including AI, economic growth can pick up without causing unwanted inflation," Matthew Martin, senior economist at Oxford economics wrote in a commentary.

Whether that trend ultimately benefits workers is another question. Martin noted the paltry wage gains as evidence that the economy can grow without improving the labor market for job-seekers: a "jobless expansion."

"It’s tempting to think productivity gains in 2025 were driven by AI," Oren Klachkin, financial markets economist at Nationwide, wrote in a commentary. "It may be having a benefit on the margin, but it’s likely too early to say AI is a driving force. AI’s productivity boost–if it indeed occurs–will likely take years to play out."

Tasos Katopodis / Getty Images

The Supreme Court could soon weigh in on the legality of the Trump administration's tax policy.

Key Takeaways

• Stock analysts are eyeing potential beneficiaries of the Supreme Court potentially repealing Trump's tariffs, but the range of possible outcomes make trade certainty look elusive.
  
• Whatever the court decides, the Trump administration has alternative ways to replace or reimpose tariffs that are repealed, fully or partially.

The Supreme Court may soon rule on President Donald Trump's tariff policy, which could shake up markets and individual stocks—but while experts have ideas about what assets might be move, the menu of possible outcomes remains complex.

Put another way, we might get some long-awaited news. But trading might not be as simple as the adage "buy the rumor, sell the news."

The court could as soon as Friday decide on Trump's use of emergency powers to impose tariffs. It could back the "Liberation Day" levies announced in April or go as far as to deem them illegal and roll them back. A ruling could bring clarity to trade policy that has been muddled for nearly a year—and which, when first announced, shocked markets that have since recovered.

Experts think a decision on trade policy could enliven markets even further. "Expect volatility if it's determined to be illegal, a rally if it comes in as allowed," Navellier & Associates CIO Louis Navellier said Thursday.

If the tariffs are struck down, analysts say, publicly traded companies most affected by the Trump administration's use of the International Emergency Economic Powers Act to establish tariffs stand to meaningfully benefit; importers might even see rebates on tariffs paid, which some companies have argued for. The range of possible outcomes, however, complicates the picture.

WHY THIS MATTERS TO YOU

The tariffs imposed last year amounted to an average tax increase of $1,100 per U.S. household last year and are seen at $1,400 this year, according to the Tax Foundation, a think tank. It estimated that those numbers would shrink to $300 in 2025 and $400 this year if the IEEPA tariffs go away.

If the Supreme Court deems the IEEPA tariffs illegal and they are permanently enjoined, companies that import more material and are involved in selling hard goods, such as sporting goods and toys—Dick's Sporting Goods (DKS), Mattel (MAT), and Hasbro (HAS) are examples—"should see the steepest reduction" in tariff expenses, according to JPMorgan equity analysts.

Walmart (WMT), Target (TGT), Costco (COST) and BJ's Wholesale Club (BJ) "should see more muted reductions," JPMorgan wrote in a report Thursday.

Retailers are paying an estimated incremental tariff of 20%, according to Deutsche Bank analysts. That could mean relief if IEEPA is struck down, though Deutsche's consumer research analysts said those tariffs could be replaced, perhaps temporarily, by others that run around 15%.

The court's decision may also land somewhere between full support or a complete rollback of Trump's tariffs. It could, for example, narrow the scope of the IEEPA tariffs to a few countries with which the U.S. runs a trade deficit, Morgan Stanley's policy strategists wrote earlier this week. It could also give the administration a "grace period" to change the legal authorities underpinning those tariffs and put a time limit on those currently in place.

And even if tariffs are fully scaled back, the Trump administration has alternative powers to replace or reimpose current tariff levels. "Among other variables, timing is the largest unknown in these scenarios," Morgan Stanley wrote.

A decision could come tomorrow. Total clarity? Perhaps not so quickly.

Oliver Helbig

A big boost in gold exports appears to be driving the data.

Key Takeaways

• The U.S. trade deficit fell by nearly 40% in October, hitting its lowest level since 2009.
• But a big increase in non-monetary gold exports, along with a steep decline in pharmaceutical chemical imports, are responsible for much of the shift. 
• The declines follow the introduction of a sweeping new set of tariffs in August, though economists said tariffs may not have had much of an impact on the trade balance as expected.

The U.S. trade deficit dropped sharply in October, but the narrowing appears to be tied to a large spike in the export of gold and silver.

The trade deficit came in at $29.4 billion, a near 40% drop from the prior month’s levels. That's the lowest reading since 2009, when the U.S. was still embroiled in the financial crisis. Economists surveyed by The Wall Street Journal and Dow Jones Newswires expected an increase in the trade deficit.

Why This Matters

A sudden swing in the U.S. trade deficit matters because net exports drive GDP, influence the dollar, and shape expectations for interest rates and corporate earnings. Understanding whether the change reflects lasting shifts in production and demand or one-off movement in commodities helps households and markets judge the durability of economic growth.

Instead, imports in October dropped by more than 3%, while exports surged by 2.6%. But that activity was concentrated in certain sectors. 

Gold Exports Surge on Rising Prices

Exports of non-monetary gold and other precious metals surged by more than $10 billion in October, offsetting declines elsewhere and accounting for more than the total $7.1 billion rise in exports that month. The spike came as gold hit a then-record high on Oct. 20, part of a recent trend of investors piling into the safe-haven asset. 

“Ultimately this sharp narrowing in the October trade deficit is almost entirely due to the movement of gold,” wrote Wells Fargo economists Shannon Grein and Tim Quinlan.

Meanwhile, the decline in imports can also be tied to a different segment: pharma. The $14.3 billion decline in pharmaceutical preparation chemical imports was more than the overall $12.1 billion drop in imports reported by the Bureau of Economic Analysis.

Positive, But Not ‘Massive,’ Boost in GDP Expected

While the decline in the trade deficit is expected to have a positive impact on the economy, it’s unclear how much, Wells Fargo economists said. 

“The rub is, this overstates the true narrowing in the trade deficit today mainly because the BEA adjusts these flows to discount any transfer of metal related to investment purposes in GDP accounting,” the Wells Fargo economists wrote. “This surge in exports will not translate to a massive boost to Q4 GDP growth of this magnitude.”

The data release, which was delayed by last year’s government shutdown, comes after President Donald Trump introduced a new slate of reciprocal tariffs in August, which raised the costs of some imported goods. These tariffs have come under a court challenge, raising uncertainty over whether they will remain. While tariffs are having some impact, Wells Fargo economists said that some trade is being rerouted through countries with which the U.S. has trade pacts, like Mexico and Canada. 

“We still believe trade flows are somewhat normalizing from tariff-influenced decision-making early last year,” they wrote.

Jakub Porzycki / NurPhoto / Getty Images

Morgan Stanley analysts said they see Colgate-Palmolive's sales rising faster than its competitors this year

Key Takeaways

• Colgate-Palmolive is poised to recover in 2026 after its sales growth slowed and stock fell in 2025, Morgan Stanley analysts wrote.
• The analysts named the company their top pick in the Household & Personal Care segment, and said they expect sales to grow faster than competitors this year.

Morgan Stanley analysts named a consumer products giant known for its toothpaste one of their top picks for the year.

Colgate-Palmolive (CL) is now the analysts' top pick in the Household & Personal Care sector, as they expect the company's sales growth to recover in 2026 after a "below-plan 2025." The analysts maintained their "overweight" rating and $87 price target for Colgate-Palmolive stock, putting them roughly in line with Visible Alpha's Wall Street average and suggesting a 13% premium to yesterday's close.

The company behind a range of personal care and cleaning products, among dozens of other brands, saw the larger consumer packaged goods (CPG) sector go through "category weakness" in 2025, the analysts said. A strong 2024 also made for difficult comparisons and slower market share gains in its key categories, Morgan Stanley said.

Why This Matters to Investors

Wall Street is broadly bullish on shares of Colgate Palmolive. The consumer products giant's shares fell by double-digit percentage points in 2025, but Morgan Stanley analysts see them rising some 13% this year, in line with Wall Street's mean forecast.

After organic sales growth reached what the analysts think is the low point in the company's last quarterly results in October, at 0.4%, they now see Colgate-Palmolive as poised to grow organic sales at a faster rate than its competitors in the coming quarters.

The analysts said they see projections of 3% organic sales growth and 6% earnings per share growth for 2026 as "reasonable," but expect the company to be conservative in its outlook when it reports fourth-quarter results.

Entering 2026, the analysts said Colgate-Palmolive is poised to post increasingly strong organic sales growth thanks to easy comparisons in 2025, growth in its developing markets, an expected recovery in market share in its key oral care segment, among other factors.

"None of these factors outside of comparisons are significant in isolation, but taken together they create a clear path to reaccelerating Colgate [organic sales growth] above peers," the analysts wrote.

Colgate-Palmolive shares rose 5% Thursday to north of $81, but are still down about 7% in the last 12 months. They fell a bit more than 10% last year.