KIEV, UKRAINE – 2018/12/19: In this photo illustration, the Colgate-Palmolive Manufacturing company … [+]
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On Monday, March 9, the stock markets saw their biggest sell off since the 2008 crisis.
There were two distinct trends driving the sell-off. Firstly, the increasing number of Coronavirus cases outside China is causing mounting concerns of a global economic slowdown. Secondly, crude oil prices plummeted by more than 20% after Saudi Arabia increased production.
Colgate Palmolive (NYSE: CL) stock fell almost 4% on Monday, but is down by a total of 12% since early February, There has been a continued drop over the last week or so considering the impact that the Coronavirus outbreak
and a broader economic slowdown could have on its supply chain. Considering the fact that consumer product sales are not expected to take a major hit, and sanitary and health care products could, in fact, see a surge in sales.
Also, going by the trends seen during the 2008 economic slowdown, it’s likely that CL stock could drop further if the S&P slides, but relatively less, and will also recover at a rate slower than the S&P.
In our interactive dashboard analysis, 2007-08 vs. 2020 Crisis Comparison: How Did Colgate Palmolive Stock Fare Compared with S&P 500?, we take a look at how the company’s stock reacted to the economic crisis of 2008 and compare its performance with the S&P 500.
Colgate Stock vs. S&P 500 Over 2020 Coronavirus/Oil Price War Crisis
- Colgate stock declined by almost 4% on Monday, March 9th and the stock is down by about 12% since February 1, after the WHO declared a global health emergency.
- The S&P 500 declined by 7.6% on 3/9/2020 and has fallen by 17.5% since February 1, after the global health emergency was declared by the WHO.
To see how Procter & Gamble, a close competitor, performed over the same period, view our interactive dashboard: 2007-08 vs. 2020 Crisis Comparison: How Did Procter & Gamble Stock Fare Compared with S&P 500?
Colgate Stock vs S&P 500 Over 2007-08 Financial Crisis
- Colgate stock declined from levels of around $27 in October 2007 (the pre-crisis peak) to levels of around $23 in March 2009 (as the markets bottomed out) and recovered to levels of about $32 in early 2010.
- Throughout the crisis, Colgate stock declined by only 13% from its approximate pre-crisis peak. This marked a much slower decline than the S&P which fell by as much as 51%.
- However, the stock also recovered relatively slowly, rising by 39% between March 2009 and January 2010. In comparison, the S&P rose by about 48% over the same period.