Unilever plc (ADR) (UL), The Procter & Gamble Company (PG): 3 Consumer Giants for the Long Run

In the first quarter of 2013, Nestle experienced good organic growth of 4.3% with total sales increase of 5.4% to CHF 21.9 ($23.21) billion. For full year 2013, the company confirmed its market outlook with an organic growth estimate of around 5%-6%, with improved margins and underlying EPS in the constant currency terms. The market values Nestle at around 16 times its forward earnings.

My Foolish take

All three consumer giants mentioned above could fit well in the long-term portfolios of investors. With their growing businesses in the emerging markets, Nestle, Unilever, and P&G could deliver decent returns for their shareholders in the long run. Unilever, with its recent business restructuring and the expansion in Indian markets, could experience significant growth. P&G’s business could improve substantially with a $10 billion cost cutting program, which could happen sooner than 2016 under A. G. Lafley’s leadership.

Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble and Unilever.

The article 3 Consumer Giants for the Long Run originally appeared on Fool.com and is written by Anh HOANG.

Anh 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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