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Momentum in Pet Business: A Catalyst for CL's Growth Phase?
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Key Takeaways
Pet care remains a core strength and competitive advantage for Colgate.
Hill's Pet Nutrition focuses on premium, science-led pet food backed by veterinarians.
The company plans to expand its pet segment by entering the fresh pet food category.
Colgate-Palmolive Company’s (CL - Free Report) pet care business remains a core strength and provides a competitive edge. As the pet industry gains traction, demand for high-quality products and services is rising. The advent of online purchasing has further bolstered the pet industry. Hence, CL has been making every possible effort to grab a larger share of the pet dominance.
The company is aggressively expanding its foothold in the pet industry by offering comprehensive pet care solutions. Colgate’s pet business, commonly referred to as Hill's Pet Nutrition, remains committed to offering science-led pet nutrition solutions, focused on premium, veterinarian-led pet food. With the help of Hill’s Pet Nutrition segment, the company has been a leader in specialty pet nutrition products for dogs and cats, with products marketed in more than 80 countries and territories worldwide. CL also plans to expand into the fresh pet food market.
Hill’s supplies pet foods under two labels, including Hill’s Science Diet and Hill’s Prescription Diet. Hill’s Science Diet offers a range of products for everyday nutritional needs, whereas Hill’s Prescription Diet spans a lineup of therapeutic pet foods to nutritionally aid dogs and cats in diverse stages of health. This February, Colgate has agreed to buy Care TopCo Pty Ltd, owner of the Prime100 pet food brand, to bolster its pet business.
CL’s Hill’s Pet Nutrition competes globally, selling through veterinarians as well as pet-supply and e-commerce retailers, and DTC channels. In first-quarter 2025, Hill's Pet Nutrition segment delivered sales of $1.1 billion, contributing about 23% to the overall quarterly sales. We expect the Pet Nutrition segment to register year-over-year growth of 1.3% in 2025.
In a nutshell, CL seeks to be a dominant player in the pet market by leveraging its Hill’s Pet Nutrition division and expanding in the pet care aisle. This is likely to boost its overall revenues and aid growth.
CL’s Competition in the Pet Market
Tractor Supply Company (TSCO - Free Report) , Chewy, Inc. (CHWY - Free Report) and Central Garden & Pet Company (CENT - Free Report) are the key companies competing with Colgate in the pet space.
Tractor Supply is CL’s key competitor in the pet care market. Tractor Supply has adopted a multi-channel approach, further buoyed by its Neighbor’s Club loyalty program. Petsense, which is a fully-owned subsidiary of Tractor Supply and a pet specialty retailer, caters well to the needs of pet owners. TSCO has been striving to become a one-stop shop for pet owners. Pet owners can have easy access to TSCO’s pet products, prescription medications and in-store services, including grooming and veterinary care. TSCO’s pet business is likely to benefit from Petsense stores, the Allivet integration and the Tractor Supply Rx medications.
Chewy, which operates as an e-commerce retailer for pet food and other related products, has been enhancing its presence in the pet market. CHWY has been making technology upgrades for its website and online platforms to aid online sales and be the perfect destination for pet lovers. Robust active customer growth and engagement, along with high Autoship customer loyalty, have been steadily contributing to its results. CHWY’s healthcare business, which offers products and services spanning online pharmacy, telehealth, pet insurance and veterinary-led management tools, is encouraging.
Central Garden & Pet has been a market leader in the pet and garden spaces, delivering innovative and trusted solutions. CENT’s Pet segment consists of dog and cat supplies like treats and chews, toys, beds and containment, grooming products, waste management and training pads; supplies for aquatics, small animals, reptiles and pet birds such as toys, enclosures and habitats, bedding, food and supplements; products for equine and livestock, animal and household health and insect control products; live fish and small animals, and outdoor cushions. Central Garden & Pet has been advancing its growth strategy through innovation, e-commerce expansion and cost efficiencies across its Pet and Garden segments.
CL’s Price Performance, Valuation and Estimates
Shares of Colgate have gained 2.6% year to date compared with the industry’s growth of 0.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, CL trades at a forward price-to-earnings ratio of 24.40X compared with the industry’s average of 20.77X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CL’s 2025 and 2026 EPS indicates year-over-year growth of 1.4% and 7.3%, respectively. The company’s EPS estimate for 2025 has been stable, while the same for 2026 has gone north in the past 30 days.
Image Source: Zacks Investment Research
CL stock currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
Momentum in Pet Business: A Catalyst for CL's Growth Phase?
Key Takeaways
Colgate-Palmolive Company’s (CL - Free Report) pet care business remains a core strength and provides a competitive edge. As the pet industry gains traction, demand for high-quality products and services is rising. The advent of online purchasing has further bolstered the pet industry. Hence, CL has been making every possible effort to grab a larger share of the pet dominance.
The company is aggressively expanding its foothold in the pet industry by offering comprehensive pet care solutions. Colgate’s pet business, commonly referred to as Hill's Pet Nutrition, remains committed to offering science-led pet nutrition solutions, focused on premium, veterinarian-led pet food. With the help of Hill’s Pet Nutrition segment, the company has been a leader in specialty pet nutrition products for dogs and cats, with products marketed in more than 80 countries and territories worldwide. CL also plans to expand into the fresh pet food market.
Hill’s supplies pet foods under two labels, including Hill’s Science Diet and Hill’s Prescription Diet. Hill’s Science Diet offers a range of products for everyday nutritional needs, whereas Hill’s Prescription Diet spans a lineup of therapeutic pet foods to nutritionally aid dogs and cats in diverse stages of health. This February, Colgate has agreed to buy Care TopCo Pty Ltd, owner of the Prime100 pet food brand, to bolster its pet business.
CL’s Hill’s Pet Nutrition competes globally, selling through veterinarians as well as pet-supply and e-commerce retailers, and DTC channels. In first-quarter 2025, Hill's Pet Nutrition segment delivered sales of $1.1 billion, contributing about 23% to the overall quarterly sales. We expect the Pet Nutrition segment to register year-over-year growth of 1.3% in 2025.
In a nutshell, CL seeks to be a dominant player in the pet market by leveraging its Hill’s Pet Nutrition division and expanding in the pet care aisle. This is likely to boost its overall revenues and aid growth.
CL’s Competition in the Pet Market
Tractor Supply Company (TSCO - Free Report) , Chewy, Inc. (CHWY - Free Report) and Central Garden & Pet Company (CENT - Free Report) are the key companies competing with Colgate in the pet space.
Tractor Supply is CL’s key competitor in the pet care market. Tractor Supply has adopted a multi-channel approach, further buoyed by its Neighbor’s Club loyalty program. Petsense, which is a fully-owned subsidiary of Tractor Supply and a pet specialty retailer, caters well to the needs of pet owners. TSCO has been striving to become a one-stop shop for pet owners. Pet owners can have easy access to TSCO’s pet products, prescription medications and in-store services, including grooming and veterinary care. TSCO’s pet business is likely to benefit from Petsense stores, the Allivet integration and the Tractor Supply Rx medications.
Chewy, which operates as an e-commerce retailer for pet food and other related products, has been enhancing its presence in the pet market. CHWY has been making technology upgrades for its website and online platforms to aid online sales and be the perfect destination for pet lovers. Robust active customer growth and engagement, along with high Autoship customer loyalty, have been steadily contributing to its results. CHWY’s healthcare business, which offers products and services spanning online pharmacy, telehealth, pet insurance and veterinary-led management tools, is encouraging.
Central Garden & Pet has been a market leader in the pet and garden spaces, delivering innovative and trusted solutions. CENT’s Pet segment consists of dog and cat supplies like treats and chews, toys, beds and containment, grooming products, waste management and training pads; supplies for aquatics, small animals, reptiles and pet birds such as toys, enclosures and habitats, bedding, food and supplements; products for equine and livestock, animal and household health and insect control products; live fish and small animals, and outdoor cushions. Central Garden & Pet has been advancing its growth strategy through innovation, e-commerce expansion and cost efficiencies across its Pet and Garden segments.
CL’s Price Performance, Valuation and Estimates
Shares of Colgate have gained 2.6% year to date compared with the industry’s growth of 0.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, CL trades at a forward price-to-earnings ratio of 24.40X compared with the industry’s average of 20.77X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CL’s 2025 and 2026 EPS indicates year-over-year growth of 1.4% and 7.3%, respectively. The company’s EPS estimate for 2025 has been stable, while the same for 2026 has gone north in the past 30 days.
Image Source: Zacks Investment Research
CL stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.