UL - Unilever: Don't Expect Market Beating Returns
2024-02-13 04:43:27 ET
Summary
- Unilever significantly underperformed the market in the past 3 years, down -11% while the S&P500 is up almost 28%.
- The action plan presented by new CEO Hein Schumacher is expected to drive 3-5% annual revenue growth while modestly improving margins, which is fairly reflected in the $50 stock price.
- Despite solid Q4 2023 results with a return to positive volume growth and margin improvements, Unilever lacks catalysts for market-beating returns.
- Unilever could be attractive for income-oriented investors looking for a reliable dividend yielding almost 4% with moderate risk and stock volatility.
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Unilever: Don't Expect Market Beating Returns