Unilever Stock Forecast

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Unilever Stock Forecast

What's Ahead For Unilever Shares?

Unilever's results for 2025 were positive, and that's why the stock had a great start to 2026. Also, many people are now avoiding high-risk tech stocks; the demand for stocks like Unilever is rising.So, that's yet another reason why Unilever stock is doing well.

However, the data also showed that sales growth is down by 1.5%. In addition, the revenue also dipped mainly due to the changes in currency value.

Unilever Has A High P/E Ratio

So, what's ahead for Unilever in 2026? According to management guidance, the sales growth will be 4% - 6% for 2026, and the volume growth will be 2%. Unilever is also expecting an improvement in itsoperating margin for the year.

The overall performance of Unilever is very solid, given the current market conditions and the world's economy as a whole.

The EPS of Unilever is 268p, which means the trailing P/E is around 20 for the year 2025. This makes it just higher than the long-term P/E of the FTSE 100.

But, we must also remember that the dividend yield of Unilever is more than 3%. All of these qualities makes the Unilever a perfect defensive stock.

However, analysts think the P/E of the Unilever shares will not come down in the next few years. So, if the Unilever results fail to meet the target, then we might see a correction in the share price.

The bottom line is that Unilever stock is walking on thin ice and might drop if any bad news surfaces. But despite all of this, many investors may still find Unilever stock attractive as it offers a dividend.

Also, Unilever has been here for several decades and isn't the type of company that will just disappear overnight. So, for those who want to include some defensive stocks in the portfolio, Unilever can be a good choice.

With all things considered, there's very little chance of any major upside in the Unilever stock. In fact, the risks are more significant, which is why buying the Unilever stock at current levels is not a good idea.

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