Stock of the Day

August 13, 2021

Unilever (UL)

$56.14
+$0.60 (+1.1%)
Market Cap: $137.82B

About Unilever

Unilever PLC operates as a fast-moving consumer goods company in the Asia Pacific, Africa, the Americas, and Europe. It operates through five segments: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream. The Beauty & Wellbeing segment engages in the sale of hair care products, such as shampoo, conditioner, and styling; skin care products including face, hand, and body moisturizer; and prestige beauty and health & wellbeing products consist of the vitamins, minerals, and supplements. The Personal Care segment offers skin cleansing products comprising soap and shower; deodorants; and oral care products, such as toothpaste, toothbrush, and mouthwash products. The Home Care segment is involved in the sale of fabric care products, including washing powders and liquids, and rinse conditioners; and fabric enhancers, and home and hygiene products. The Nutrition segment provides dressings products, such as mayonnaise and ketchup; sells scratch cooking aids consist of soups, bouillons, and seasonings; plant-based meat; beverages; and functional nutrition products, including Horlicks and Boost, as well as tea products. The Ice Cream segment offers ice cream products including in-home and out-of-home ice creams. The company provides its products under the AXE, Ben & Jerry's, Cif, Clear, Closeup, Comfort, Cornetto, Dermalogica, Domestos, Dove, Dove Men+Care, Hellmann's, Horlicks, Knorr, LUX, Lifebuoy, Liquid I.V., Magnum, Nutrafol, OMO, Paula's Choice, Pepsodent, Pond's, Rexona, Rexona, Sunlight, Sunsilk, Surf, TRESemmé, Vaseline, Wall's, Breyers, and Yasso brand names. Unilever PLC was founded in 1860 and is headquartered in London, the United Kingdom.

Unilever Bull Case

Here are some ways that investors could benefit from investing in Unilever PLC:

  • Unilever PLC has recently seen a significant increase in institutional investment, with firms like Entropy Technologies LP acquiring a new position valued at approximately $1.81 million, indicating strong confidence in the company's future performance.
  • The stock is currently trading at $56.01, which is near its 12-month low of $46.46, suggesting potential for price appreciation as it rebounds towards its 12-month high of $65.87.
  • Analysts have mixed but generally positive ratings, with a consensus rating of "Hold" and a target price of $61.75, suggesting that there is room for growth in the stock price.
  • Unilever PLC operates across diverse segments including Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream, which helps mitigate risks associated with reliance on a single product line.
  • Recent upgrades from analysts, such as the upgrade to a "strong-buy" rating by Sanford C. Bernstein, reflect positive sentiment and potential for upward momentum in the stock.

Unilever Bear Case

Investors should be bearish about investing in Unilever PLC for these reasons:

  • Unilever PLC has faced downgrades from several analysts, including a cut from "sector perform" to "underperform" by Royal Bank of Canada, which may indicate underlying challenges in the company's performance.
  • With 9.67% of the stock owned by institutional investors, there is a risk of volatility if these investors decide to sell their positions, which could negatively impact the stock price.
  • The company's stock has experienced a decline, trading down $3.13 recently, which may signal weakness in market demand or investor sentiment.
  • Three analysts have rated the stock with a sell rating, which could deter potential investors and lead to further price declines.
  • Unilever PLC's diverse product segments, while a strength, also mean that the company must navigate various market dynamics, which can complicate overall performance and profitability.

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