Recent declines in stock value have hit Unilever, The Hershey Company and Lamb Weston. All ranging from 19% to 28% from their all-time highs. But they also present potential buying opportunities for intelligent investors. As finance expert Josh Kohn-Lindquist points out, factors like low valuations, consistent dividends and reduced volatility risk are key elements to consider.
Unilever, with a solid track record of steady earnings is a consistent player in an uncertain market. The company is used by about 3.4 billion consumers worldwide. Despite strong sales in emerging markets and strategic offloading of its cash-heavy ice cream business, it saw a significant 20% fall in share value. But Kohn-Lindquist believes the company’s robust commitment to quality and strong sales in developing economies can help it recuperate its market standing.
On the other hand, The Hershey Company, has seen a 29% decrease in shares. This decline is largely due to increased cocoa prices and capital spending for a new Enterprise Resource Planning (ERP) system.
Downturn presents potential investment opportunities
But there’s still potential for recovery. A steady 17% net profit, positive Free Cash Flow (FCF) margin, and a popular product line all hint at a possible rebound. Assurances from Kohn-Lindquist suggest that this downturn could be a temporary hiccup in the company’s long-term growth path.
Lamb Weston, a forerunner in the frozen potato market, has also seen a 21% reduction in stock value. This is mainly due to challenges with a new ERP system. But this does not negate the attractiveness of the company as an investment. Noting its significant market presence, strategic planning and undervalued shares, Kohn-Lindquist sees potential for profits.
Kohn-Lindquist believes that despite the challenges faced by Unilever, The Hershey Company, and Lamb Weston, investors should not easily dismiss them. Their robust business models, potential for growth, and promising investor returns are evident. And with their valuations at a ten-year low, these companies are well-prepared to bounce back and achieve future victories.
