Having a presence in the beauty sector isn’t a bad idea, but for Unilever (NYSE:UL), it might be a better idea to get out. Investors are saying as much as well, giving Unilever fractional gains in the closing minutes of Thursday afternoon’s trading.
The word noted that Unilever was looking to sell its beauty and personal care operations, which include iconic brand names such as Q-Tip, among a host of others. It’s part of a larger movement at Unilever to streamline the business and make it a little easier to manage, and also bring in some extra cash, which is vital during inflationary conditions like those we’re seeing now.
This isn’t the first time Unilever tried to sell off the brands, either; back in 2021, it tried to do so but ended up with a handful of squabbling brands trying to pick and choose what they wanted to buy and not bringing any offers worth considering. Now, Unilever is turning to Morgan Stanley to help out, and that should help get a few more interested offers in play.
Is Unilever a Good Long-Term Investment?
Historically speaking, Unilever stock hasn’t done very well in terms of price appreciation over the past five years. Indeed, shares have only gained 9.13% during this timeframe.
