Investing in Nestlé
But to check how profitable it is to invest in Nestlé, we bring you a detailed analysis of the company, where you will learn all the relevant information about it and stock market data such as: how much a share of Nestlé is worth and how you can buy it.
What is Nestlé?
Nestlé S.A. is a multinational company that has been producing food and beverages for more than 150 years. The products it offers are: baby food, cereals, coffee, tea, dairy, ice cream, snacks, pet food, frozen food and many more.It is headquartered in the city of Vevey in Vaud, Switzerland and is considered one of the largest food companies in the world. In 2014, it ranked number 72 on the Fortune Global 500 list, then in 2016 it was listed as one of the largest public companies, according to 2000 Forbes Global magazine.The company has obtained more than 2,000 recognized brands worldwide, some of them are: Purina Dog Chow, Nescafé, Maggi, Cerelac, Nestea, Milo, Rica Chicha, Savoy, among others. It has around 450 factories distributed in more than 190 different countries.
The company’s market capitalization is currently worth some 259 billion Swiss francs. In addition, there are 3.188 billion Nestlé shares circulating in the market. The shareholding is made up of institutional investors with a 79% stake and the remaining 21% of private investors.Nestlé is actively traded on the Main Standard on the SIX Swiss Exchange in Switzerland. You can also buy a stock under the acronym NSRGF on the Nasdaq Nestlé market. This company is part of the European FTSE Eurotop 100 index, i.e. it is positioned within the 100 largest capitalizations of that continent.Also, there are compelling reasons why investing in Nestlé shares in the stock market could be a good opportunity. These are:The company has gained strong partnersFor the first time, Nestlé in 1974 obtained 51% of another non-food company called Gesparal. It should be noted that the latter already held more than 50% of the shares of L’Oréal cosmetics.Then in 2004 Gesparal partnered with the cosmetics company, giving Nestlé more than 23% of L’Oréal. Ten years later, Nestlé traded with the cosmetics company to finally get half of it.In 2007, Nestlé food products acquired the baby food manufacturer Gerber for $5.5 million. Helping Nestlé rise to the top spot as the best infant nutritionist around the world.The company has great valueAs of the first months of this year, the value of Nestlé stocks reached 270 billion euros, much more than double that of other German companies.During 2019, Nestlé earned more than 92 billion Swiss francs in revenue, which is estimated to be approximately 87 billion euros. This means they increased sales by 3.5% and made 23% more profit than the previous year.Buying Nestlé shares: AdvantagesWhen buying shares in Nestlé, it is essential to know first what are the strengths or advantages that the company has as an asset in the stock market. So, we will show you the most important ones:
- It has a strong position among the world’s food industry leaders: This is due to the large number of brands it owns.
- It uses a very effective business strategy: The company uses a strategy that consists of constant innovation and research, in order to constantly improve its product portfolio and stabilize Nestlé shares at an accessible price.
- It has great positioning in terms of finance and profitability: This provides peace of mind to each of its investors, and also helps the value of Nestlé shares to continue to rise.
- Conserva the leadership in the capsule coffee market: In spite of not having the correct advertising strategy, it has managed to obtain this position.
- Aim to expand your market even further: This will help you make even more profits over time, especially in the Asian market.
Buying Nestlé shares: Disadvantages
- The company was recently affected by a scandal: it was discovered that the company used horsemeat to produce some of its products. As a result, the image of the Nestlé brand was affected.
- Strong competition in food distribution: On some occasions its competitors have acted in order to discredit the company’s image and to favor themselves.
- Nestlé’s share price is higher than that of its competitors: Nestlé shares currently trade at just over 99 Swiss francs, which is approximately $111.
Currently on the web you can get stock brokers to trade in different stock markets.Our recommendation to buy or sell Nestle shares is to use the broker called eToro, which will provide you with several options for trading. The first is by using the Copy Trading investment method and the other is by using contracts for difference or CFDs. So, if you still don’t know how to trade Nestle shares through this broker, below we will explain how to do it:
- Open an account on the platform by filling out a form with your data and then log in.
- You must confirm your identity by uploading the requested documents.
- Transfer the amount you wish to invest and enter Nestlé in the search bar.
- When you choose the stock, press buy.
- Now choose the desired amount, press the invert button and you’re done!
- Before you start, study everything related to investing in Nestlé stocks: For some, this activity may be something new, so it is advisable to start studying all the terminology in the area.
- Make decisions carefully: It is advisable to create an investment plan that will help you enjoy the desired success.