Unilever (UL, $50.39) won't raise bid beyond £50 billion for GSK's healthcare division
Unilever shares climbed higher on Wednesday, after the consumer goods company announced that it won't increase its offer for the consumer healthcare division of GlaxoSmithKline above £50 billion.
GSK's health products business owns brands such as Panadol, Sensodyne toothpaste, and Centrum vitamins.
According to GSK, Unilever's bid valued at around $68 billion has "fundamentally undervalued" the division. GSK was reportedly wants an offer in the region of £60 billion following the addition of brands from Novartis in 2015 and Pfizer in 2019.
"The acquisition would create scale and a growth platform for the combined portfolio in the US, China and India, with further opportunities in other emerging markets," Unilever said, emphasizing on synergies in the oral care and vitamin supplements business.
UL's RSI Indicator remains in oversold zone for 2 days
It is expected that a price bounce should occur soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where UL advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .
UL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 10, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on UL as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for UL turned negative on December 19, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for UL entered a downward trend on November 26, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. UL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.390) is normal, around the industry mean (16.934). P/E Ratio (18.032) is within average values for comparable stocks, (201.433). UL's Projected Growth (PEG Ratio) (14.961) is slightly higher than the industry average of (3.832). Dividend Yield (0.037) settles around the average of (0.107) among similar stocks. P/S Ratio (1.961) is also within normal values, averaging (113.563).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a provider of fast moving consumer goods
Industry HouseholdPersonalCare