Swiss food giant Nestle (Nasdaq:NSRGY)
is a remarkable company in several respects. Despite being one of the
largest food companies in the world, Nestle continues to focus on
ongoing product innovation and is closing in on generating half of its
sales from emerging markets. Add 20 billion-dollar brands and a long
track record of out-earning its cost of capital, and it's not too hard
to see why Nestle shares often trade at a premium.
“Often” is not the same as always, though, and a recent slowdown in
organic sales growth seems to have created a window of opportunity in
these shares. Investors have to accept the risk that the company will
fail to deliver 5% organic growth for 2013, but the long-term
opportunity makes this a name worth considering.
Please read the full article at Investopedia:
http://www.investopedia.com/stock-analysis/081213/weaker-organic-growth-creating-opportunity-nestle-nsrgy-krft-gis-ul.aspx
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