Unilever [LON:ULVR] share prices dropped 8% over the last six months, most of it last week when the company reported annual results below the already relatively modest analysts’ expectations. The selloff was fast and furious with Unilever losing 6.6% of value overnight.
Now trading at 4,350 pence, is it time to sell Unilever and buy one of its peers like Reckitt Benckiser? Or does the drop create a good opportunity to stock up on a growth share?
Unilever is a major producer of a wide range of consumer goods including personal care, home care products, food and nutrition. Its well-known brands like Dove, Knorr, Lipton, Hellmann’s, Axe, Ben & Jerry’s, Sure, Magnum, Lynx and PG Tips are sold in around 190 countries.
Internationally some of Unilever's competitors include Colgate Palmolive [NYSE:CL], Johnson & Johnson [NYSE:JNJ] and Procter & Gamble [NYSE:PG]. In London its nearest competitor is Reckitt Benckiser [LON:RKT] which is also focused on health, hygiene, and home care products but is not involved in food and nutrition.
Unilever’s size dwarfs RKT with a market cap of around £108 billion versus RKT’s £34 billion. However, the distance will narrow later this year given that Unilever plans to sell off its ice cream business for around $19.4 billion (£15.4 billion).
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