2024-06-12 17:45:04 ET
Summary
- Kenvue (KVUE) was created as the result of a spinoff from Johnson & Johnson and encompasses the consumer side of the business.
- KVUE manages a wide array of products within each segment, but sales volume remains vulnerable to consumer spending.
- Data shows us that consumers are willing to go with store-branded generics as an alternative to name brands under KVUE's umbrella to save money.
- Based on valuation, KVUE may be trading near fair value and increases may depend on how strong segment growth is going forward.
Overview
Kenvue ( KVUE ) was created as part of a spinoff from Johnson & Johnson's ( JNJ ) consumer health business. To get an idea of the products that shifted as part of this spinoff, we need to focus on the key word "consumer". Think about products like mouthwash, headache medicine, face creams, and first aid items. The business includes a portfolio of products that can be used every day, which means that it has a wide reach in terms of potential customer base. The spinoff from JNJ was a result of company restructuring and a shift to focus on their businesses core operations, which was the pharmaceutical segment....
Read the full article on Seeking Alpha
For further details see:
Kenvue: Portfolio Of Products Can Be Replaced With Generic Brands