Unilever Stock Forecast

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Unilever Stock Forecast

Will Unilever Shares End The 5 Year Downtrend?

The FTSE 100 gave a modest return to investors in the last 5 years. As per the data, the UK's stock market index gained 54.9% in the last 5 years. If we also include dividends in it, then the return becomes even more attractive.

However, there's one stock that didn't have such a great time in the last 5 years. Yes, we are talking about Unilever (ULVR), which went nowhere during that period.

Unilever Market Cap Is Above 112 Billion

If we look back, Unilever was a great stock for several decades. The company would raise its dividends and increase its sales consistently over the years. As a result, the stock price of Unilever also followed suit.

But it all changed during the COVID crisis, and the company has been struggling since then. For decades, Unilever was an overachiever, but now the stock is classified as an underperformer.

The recent market cap of Unilever is more than 112 billion, which makes it the 4th largest company in the FTSE 100. But despite this, the share price of Unilever hasn't gone anywhere in the last few years.

Over a period of 5 years, the Unilever stock is actually down by 3.4%. But, we must also consider that Unilever also offers a dividend yield of 3.4%. This means the total return of Unilever was just barely positive, but nothing extraordinary.

But we must also understand that Unilever is a very old player, as it was established in 1929. Since then, Unilever has survived the Great depression of the 1930s and even the US stock market crashes.

In 2024, the company reported a turnover of 60.8 billion and has a presence in 190 countries. Even today, around 3.4 billion people use Unilever's products, which speaks to the popularity of the company.

So while the Unilever shares have failed to go anywhere recently, it won't last long. In fact, the Unilever shares are undervalued, which makes them a good option for long-term holding.

The bottom line is that the products of Unilever have demand among a massive consumer base. On top of that, that demand isn't going anywhere, which tells us that Unilever stock has the potential to turn things around.

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