On February 20, 2019, we posted the 10-Year Targets for Colgate-Palmolive. At the time, we contrasted our expected price range for the stock to the latest Value Line Investment Survey. Our commentary was as follows:
“According to Value Line Investment Survey, Colgate-Palmolive (CL) has an expected price range of $75-$90 by 2021-2023. On our end, we have a range from as low as $61.12 to as high as $88.85 in the same period of time.”
The Value Line expected low range in the stock price at $75 did not account for downside risk potential. Meanwhile, based on extensive history of the data, we projected a price, $61.12, that was realized after one year at the pandemic low.
Always consider the downside risk before and after considering the upside potential.
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