Stock Picking, Investing, Stocks

We’re Looking At: Unilever

One stock we’re looking hard at is Unilever (UL). The corporation has two major branches: Food and Home & Personal Care. Among the companies under their corprate umbrella are Slim Fast, Breyers, Axe and Dove. It’s the personal care arm of Unilever that really shows the most potential for earnings, and consequently, improvement in the value of the stock.

The growing markets of China and India present a huge opportunity for personal care products. As they become more developed and a true middle class emerges, the benefits and status of name-brand soaps and other hygenic goods will translate into big money for Unilever. It won’t happen overnight, which is why this stock is a great long-term investment.

Moreover, the marketing departments within various Unilever companies have identified females as the single most important demographic in the United States. Weilding 80% of the buying power in American households, women are the decision-makers when it comes to family spending. Those companies that realize this fact and act on it will propel themselves ahead of the competition, and I’m backing Unilever to be one of those companies.

Perhaps the best example of this market intelligence is Dove, who debuted revolutionary TV commercials featuring “regular” women instead of models. This proved extremely successful as it resonated with the female demographic. There’s no reason to believe that Unilever won’t apply this knowledge to more of their businesses, and the results should be tremendous. You heard it here first.

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