Unilever plc ( NYSE: UL ) stands to benefit now that the COVID restrictions have been removed, says Gina Sanchez. She’s the Chief Market Strategist at Lido Advisors.
Unilever is attractive at the current price
At $45 a share, the multinational consumer goods company is currently trading under its pandemic low that makes it attractive in terms of valuation. On CNBC’s “The Exchange” , Sanchez said:
Unilever has been doing extraordinarily well now that we’re back in person and in a lot of ways, showering is back in Vogue.
In July, Unilever said it had a turnover of €15.8 billion in its fiscal second quarter – up about 17% on a year-over-year basis. The mega cap is headquartered in the United Kingdom but generates roughly 78% of its revenue from outside of Europe.
Earlier this year, Unilever named activist investor Nelson Peltz to its board. ( link )
Why else does she like the Unilever stock
Sanchez is a proponent of owning low beta stocks in times of volatility and Unilever plc , with a beta of 0.13, meets that requirement. She also likes it for the dividend yield.
Unilever is another one that has reasonably low beta and it is also paying a 3.60% dividend yield. So, cash is great, defensiveness is great, and this is something you need.
Unilever stock is now at its 100-day moving average (roughly). Failure to meaningfully break below it would further strengthen the bull case . Last week, CEO Alan Jope also said the company was “undervalued”.
Wall Street, though, has a consensus “hold” rating on its shares.
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