UL - Why Unilever Stock Jumped Higher on the Market's Down Day
2024-04-25 12:26:42 ET
Shares of multinational consumer-goods conglomerate Unilever (NYSE: UL) jumped higher on Thursday even though the S&P 500 was markedly down. The company just reported its latest quarterly financial results, which were full of pleasant surprises. And that's why Unilever stock was up 5% as of 11 a.m. ET today.
In the first quarter of 2024, sales were up a little more than 4% year over year. That's a small increase, to be sure, but small gains are to be expected with a company as big as Unilever. And investors were nevertheless encouraged because the company's sales volume increased by 2.2%.
For a mature consumer staples company such as this, there are three usual paths to growth. Companies can increase sales volume or raise prices -- or do both. Unilever mostly grew thanks to volume increases alone in the first quarter, which is the best path of the three.
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Why Unilever Stock Jumped Higher on the Market's Down Day