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5-Star Stocks Poised to Pop: Unilever

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, consumer staples giant Unilever (NYSE: UL  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Unilever's business and see what CAPS investors are saying about the stock right now.

Unilever facts

Headquarters (Founded) London (1885)
Market Cap $95.8 billion
Industry Packaged foods
Trailing-12-Month Revenue $58.5 billion
Management CEO Paul Polman (since 2008)
CFO Jean-Marc Huet (since 2010)
Return on Equity (Average, Past 3 Years) 36.5%
Cash/Debt $3.8 billion / $14.3 billion
Dividend Yield 3.5%

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 852 members who have rated Unilever believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, NHWeston, nicely summed up the Unilever bull case for our community:

They have well-known brands of assorted household goods and are quietly buying up little companies in Africa, India, Turkey, Indonesia, and Latin America. While such a strategy has obvious costs, you are not just buying a product, you are buying a brand with name recognition and customer loyalty you can use for a multiplier effect. And there's a dividend, too. Don't let the Euro-terrors spook you. Uneee makes moneee!

But before you run out and start gobbling up shares, some of Unilever's peers might actually be better suited to your own individual investing profile.

Kraft (NYSE: KFT  ) shares, for example, have easily outperformed Unilever's over the past year, so it might be a better option for those looking for a little price momentum. Meanwhile, Procter & Gamble's (NYSE: PG  ) much larger size and higher operating margins continue to make it a purer "blue chip" play. And PepsiCo's (NYSE: PEP  ) double-digit revenue growth over the past several years likely gives it the edge among growth-seekers. However, when you consider that Unilever boasts a higher dividend yield than each of its peers mentioned above, the stock seems nicely suited for income investors looking to buy into the space.

What do you think about Unilever, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Unilever, PepsiCo, and Procter & Gamble, as well as creating a diagonal call position in PepsiCo. The Fool owns shares of PepsiCo. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Brian Pacampara
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I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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Related Tickers

10/21/2014 12:47 PM
UL $40.99 Up +0.48 +1.17%
Unilever CAPS Rating: ****
KRFT $56.40 Up +0.52 +0.92%
Kraft Foods, Inc. CAPS Rating: ****
PEP $93.71 Up +0.16 +0.17%
PepsiCo CAPS Rating: ****
PG $84.38 Up +0.20 +0.24%
Procter & Gamble CAPS Rating: ****

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