This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Will Nestle (NSRGY) Stock Be Helped By A Bigger Is Better Approach?

NEW YORK (TheStreet) -- Nestle (NSRGY) CEO Paul Bulcke defended the company's large structure, saying it allows Nestle to scale up functions such as R&D that aid the entire group. Size works well, he said, as long as the front end of the businesses can operate independently, he told Reuters.

While Nestle is reducing its huge range of businesses and moving deeper into niche medical products to improve returns, the food and beverage giant still likes its heft.

Last year Nestle missed its long-term forecast for sales growth of 5% to 6%, and many analysts think that even with investments in faster-growing areas like medical nutrition and dermatology, Nestle is just too big to move the needle, Reuters reports.

: Warren Buffett's 25 Favorite Growth Stocks


Its market value of $248 billion is 15% larger than the number two consumer products firm, Procter & Gamble (PG - Get Report), and compared with other food makers, Nestle is 86% bigger than its nearest rival Unilever (UL), according to Thomson Reuters data.

Shares of Nestle are flat this afternoon at $77.72.


NSRGY data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NSRGY $73.68 -1.41%
PG $81.35 0.31%
UL $44.75 -0.36%
AAPL $94.35 -0.87%
FB $117.92 0.42%


Chart of I:DJI
DOW 17,700.78 -50.13 -0.28%
S&P 500 2,057.00 -6.37 -0.31%
NASDAQ 4,747.7240 -15.50 -0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs