Colgate-Palmolive stock falls as S&P 100 reshuffle drops the consumer staple

Published on 09/07/2026 at 23:44 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Colgate-Palmolive stock is under pressure after S&P Dow Jones Indices confirmed that the consumer products group will be removed from the S&P 100 index, highlighting how mega-cap benchmarks are tilting further toward AI-focused technology names.

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Colgate-Palmolive stock (ISIN US1941621039) is trading lower after S&P Dow Jones Indices confirmed that the company will be removed from the S&P 100 index in an upcoming quarterly rebalancing, underscoring how mega-cap benchmarks are shifting away from traditional consumer staples toward high-growth AI infrastructure plays as of September 7, 2026.Yahoo Finance

Index removal puts Colgate-Palmolive in the spotlight

According to FinanceFeeds, S&P Dow Jones Indices plans to remove Colgate-Palmolive from the S&P 100 prior to the opening of US markets on September 21, 2026, alongside Nike, Honeywell Aerospace and Simon Property Group, while adding four technology names tied to AI capital spending such as Dell Technologies, Palo Alto Networks, Arista Networks and SanDisk.

The reshuffle reflects a simple market-capitalization story: Colgate-Palmolive’s market value has fallen enough that it no longer ranks among the very largest US companies, while the incoming AI-focused firms have seen substantial price gains and market-cap expansion in 2026.Yahoo Finance For investors, this means Colgate-Palmolive will lose its role in the S&P 100-linked products such as the iShares S&P 100 ETF, where it most recently represented about 0.16 percent of fund assets at the June 2026 snapshot.Yahoo Finance

Valuation and recent fundamentals for Colgate-Palmolive

Market valuation metrics show that Colgate-Palmolive remains a relatively expensive defensive stock despite the index removal. Recent data cited by GuruFocus indicate that Colgate-Palmolive trades at a price-to-earnings ratio of 35.23 times trailing twelve-month earnings, compared with a 5-year median P/E of 31.26 times; that gap of roughly 4 points suggests the stock is trading at a premium versus its own historical earnings multiple.

For context, the same source notes that Colgate-Palmolive’s GF Value estimate stands modestly above the current share price, implying a small single-digit percentage undervaluation relative to that proprietary fair-value measure, even as the P/E ratio sits above the long-term median.GuruFocus This mix of signals illustrates how investors have been willing to pay up for defensive consumer staples earnings, yet the premium has not been enough to prevent Colgate-Palmolive from slipping out of the very top market-cap bracket represented by the S&P 100.

Analyst and investor implications of the S&P 100 exit

The S&P 100 reshuffle has direct consequences for passive flows and for how investors use mega-cap benchmarks. As Yahoo Finance explains, the iShares S&P 100 ETF has been marketed as a clean way to own America’s largest blue chips, but the index is increasingly dominated by AI-linked technology stocks; Colgate-Palmolive and Nike together represented only 0.27 percent of the fund before their removal, highlighting how small their weights had already become.

For Colgate-Palmolive shareholders, the removal from the S&P 100 will likely trigger some mechanical selling by index and ETF products that track the benchmark, but the effect is constrained by the stock’s already low weight. The more fundamental signal is that market-cap-driven indices are rewarding sectors with strong AI and technology exposure while gradually reducing exposure to mature consumer staples with slower growth profiles.Yahoo Finance Investors who hold Colgate-Palmolive as a defensive pillar in their portfolios may therefore see the index move as a reminder to reassess the balance between income stability and growth exposure.

Colgate-Palmolive’s core oral care franchise

Colgate-Palmolive generates a significant portion of its revenue from its global oral care franchise built around the Colgate brand, including toothpaste, toothbrushes and mouthwash. This category has historically provided resilient cash flows thanks to high household penetration and repeat purchase behavior in both developed and emerging markets, supporting the company’s role as a defensive staple despite index changes.

Stock level and market data snapshot

US equity markets, including the New York Stock Exchange where Colgate-Palmolive is listed under the ticker CL, are closed on September 7, 2026 for the Labor Day holiday, so the most recent available trading data for the stock come from the prior completed trading session as of September 4, 2026.INDmoney At that close, Colgate-Palmolive’s share price stood at USD 88.77, with the move on the day leaving the stock modestly lower in conjunction with the S&P 100 reshuffle headlines, and placing it below technology peers that have posted significantly larger year-to-date gains.GuruFocus