Unilever plc (ADR) (UL): Why Is This Consumer Giant a Good Bet?

The Procter & Gamble Company (NYSE:PG)’s recent changes in top management, and the re-appointment of former CEO, A.G. Lafley, as President and CEO have raised many questions about the company’s prospects. Investors have an eye on the performance of the once-and-current CEO, and have great expectations of him due to his past record. Its $10 billion cost cutting plan aims at improving productivity by cutting down on overhead and marketing costs, and the company has made changes in its top management so that it can leverage upon the expertise of the newly appointed leaders for brand expansion.

I believe Unilever is a good option for investors, with low P/E and P/S ratios. Colgate’s valuations are on the slightly higher side, while P&G is facing uncertainty due to recent management changes.

Conclusion

Unilever plc (ADR) (NYSE:UL) is planning to get a strong foothold in emerging markets. It has offered to extend its stake in its Indian subsidiary, and also increased its sales and distribution reach in Indonesia, and such initiatives will help Unilever to achieve long term growth. Its new product launches across many categories and markets will help it to attract customers, whereas its “sustainable living plan” will help it to retain them as well as improve the efficiency of its business. Based on all of these things, I recommend a buy.

The article Why Is This Consumer Giant a Good Bet? originally appeared on Fool.com and is written by Gayatri Sharma.

Gayatri Sharma has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble and Unilever. Gayatri is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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