Unilever is a multinational consumer goods company that produces a wide range of products including food, beverages, cleaning supplies, and personal care products. If you want to invest in Unilever stocks, it is best to know more about the company and the pros and cons of your investment.
What is Unilever?
Unilever is one of the world’s largest consumer goods companies, selling various products such as bottled water, condiments, baby food, instant coffee, ice cream, toothpaste, beauty products, personal care, tea, pharmaceuticals and so much more. It is a British multinational corporation headquartered in London and Rotterdam and operates in over 190 countries. Its largest brands are Sunlight, Lifebuoy, Dove, Lux, Sunsilk, Ben & Jerry’s, Axe/Lynx, Rexona/Degree, Omo/Persil, Knorr, Heartbrand (Wall’s), Magnum and Hellmann’s. This company has three divisions – Beauty & Personal Care, Foods & Refreshments and Home Care. They have stationed their development facilities in the United States, United Kingdom, Netherlands, India and China.
Is It Worth To Buy Unilever Shares in 2023?
Unilever stocks are traded on the London Stock Exchange, Euronext Amsterdam and New York Stock Exchange. The company has a market capitalization of $126.8 billion as of January 27, 2023, making it to the 99th percentile of companies under Personal Products industry. It has been on an impressive run in recent weeks, with ADR’s price-earnings ratio of 20.2 and ADR’s trailing of $61.3 billion is the past 12 month revenue. The quarterly sales growth is 14.9% according to the most recent sales growth.
Overall, Unilever has a Momentum Grade of C, Growth Grade of B and Value Grade of D. Considering the potential for growth, Unilever may be a good option for long-term investors seeking to diversify their portfolios.
Pros of Buying Unilever Stocks
Investing in Unilever stocks can be a lucrative decision for any investor. As such, they offer strong long-term returns with a solid portfolio of brands and a consistent record of strong financial performance. Moreover, Unilever stocks have a history of dividend payments, meaning that investors can benefit from both capital gains and dividends. Unilever has an excellent track record for corporate social responsibility, making it an attractive option for ethical investors.
Cons of Buying Unilever Stocks
Investing in Unilever stocks does come with certain cons. Unilever is a large multinational corporation, so it may be difficult to predict the long-term performance of their stock. Additionally, the company is exposed to currency fluctuations, and any exchange rate changes can impact the value of its stock. Furthermore, due to Unilever’s size and scope, they are exposed to various risks, including political, environmental, and economic risks that could negatively impact the stock price. Therefore, investors should be aware of these potential risks before investing in Unilever stocks.
Unilever stocks are an attractive option for those looking to invest in a stable and reliable company. However, investors should be aware of the risks associated with investing in Unilever stocks and possible fluctuations in their value due to currency fluctuations and other factors.