Almost everyone will agree that the AI stocks are overvalued. It's totally understandable, as most of the valuations in this particular space are too elevated.
That's why many investors are now on the lookout for stocks that will avoid the upcoming AI crash. One such stock is Unilever (ULVR) and is available on the London Stock Exchange.
Unilever has earned its reputation as a defensive stock that can easily weather even the toughest market conditions. Unilever is a powerhouse in the consumer goods sector and owns tons of household brands. This includes Dove, Lipton, and so on.
The forward P/E ratio of Unilever is around 18, which is very reasonable for a company like Unilever. After all, even lesser-known stocks have a high P/E without any strong revenue or other stuff!
Also, the Unilever stock comes with a 3.4% dividend yield, which is another plus point of it. And when the upcoming AI crash hits the market, more investors will flock to stocks like Unilever.
Another positive thing is that Unilever has a new CEO who has been with the company in a different role since 1988! So, there's no doubt that he knows the company inside out and will work to bring out the strengths of Unilever.
The Unilever management has also started to cut expenses and let go of some brands. There are reports that Unilever is now planning to sell some of its businesses.
Also, the brands under Unilever have been around for a long time now. This means they are very popular and consumers will continue to use them.
Overall, Unilever has a strong customer base, strong revenue, and is miles away from all that AI stuff. So, if you are looking for a defensive stock that will help you avoid heavy losses when the AI stocks crash, consider Unilever.