Analysis of Nestle share price

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The agri-food sector has a large number of listed companies. In fact, on the stock market, you will be able to find Nestlé shares, which are now one of the most popular with investors. But before buying these shares online take the time to read the information you need to complete a full technical analysis of its share price with quality data relating to the activities of this group together with a historical study of its share price.  

Elements that can influence the price of this asset:

Analysis N°1

The group continues to focus its activities towards nutrition and well being. We would therefore monitor operations completed in this area that represent major growth opportunities for this group.

Analysis N°2

The same is true for certain specific sectors undergoing full expansion such as coffee capsules that Nestle is increasingly developing.

Analysis N°3

From a geographical point of view, we recommend you monitor the development of Nestle’s activities in emerging markets such as China and India.

Analysis N°4

It is also recommended to follow Nestle’s competitors and in particular the growing competition from major shop brands that are overshadowing this company by taking parts of its market share.

Analysis N°5

Finally, the strengthening of regulations leads to higher costs relating to product standardisation and should therefore be followed closely.

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General presentation of the Nestle Company:

The Nestle group is currently the world leader in the food sector. Its turnover is achieved through the sale of drinks, dairy and ice cream products, prepared meals and seasonings, pharmaceutical products, nutrition and well being products, animal food, chocolates, biscuits and confectionary.

These products are sold worldwide under different brands some of which are household names.


Know the competition to Nestle’s shares:

The Nestle Group is one of the global leaders in the food sector, particularly due to its large and diversified range of brand names. However, other giants in this sector offer similar products that also benefit from major brand names and these represent strong competition to Nestle. It is therefore important to know the major competitors of this company and include them in your fundamental analysis of this stock market asset to be able to implement an effective investment strategy. To assist you here is a list of the major direct competitors to Nestle worldwide:


Strategic alliances implemented by the Nestle Group:

To conclude here are some recent partnerships implemented by the Nestle Group.


Introduction and quotation of the Nestle shares:

The Nestle share price is actually quoted on the Pan European market of the NYSE ARCA Europe stock market. It is also integrated in the calculation of the Stoxx Europe 50 stock market index.

The historical stock market charts of the Nestle share price takes into account the highly positive growth of this asset over the last ten years. We notice just one downward correction between 2007 and 2009.


Stock market data

To better understand the position of the Nestle Company on the international stock markets it is of course important to know its financial and stock market history as well as other relevant general information about the company. Here therefore are some important stock market facts and figures you should know that will assist you in implementing strong strategies when speculating on this asset.      


Economic history

To understand how the Nestle share price has evolved over the last few years it is primordial to combine the historical technical analysis of this asset with a fundamental analysis. To do so here are some significant dates you should know that relate to major economical and financial events experienced by this group over recent years.       


What are the strengths and advantages of the Nestle share as a stock market asset?

First of all, of course, the Group's positioning as one of the leaders in the global food industry. This position is due in particular to the many brands owned by the group and which we have discovered in detail above.

On the other hand, the Nestle Group relies heavily on a strategy of innovation and advanced research. Its R&D investment capabilities enable it to react very quickly to new consumer needs and help it to offer products that meet those needs before the competition does.

Finally, it is of course well known that Nestle enjoys a very comfortable financial position and an assured profitability that gives investors a high degree of reassurance.

For the years to come, various opportunities are available to the Nestle Group and could tip the forecasts in favour of a further rise in its share price on the stock market. In particular, the efforts made by the company in terms of developing its activities and products in the field of nutrition and well-being could rapidly bear fruit in a consumer society that is increasingly attentive to the quality of life.

Nestle also continues to enjoy its leading and pioneering position in the pod coffee market with a marketing strategy that has not yet delivered its full potential and that should continue to appeal to the public in the years to come.

Finally, it is known that the Nestle Group is currently focusing its efforts on emerging markets, particularly China and India, which could bring it many long-term benefits.


Weaknesses and disadvantages of the Nestle share as a stock market asset :

Firstly, the group has recently suffered greatly from the health scandal concerning the presence of horse meat in some of its prepared products. Although the fallout from this episode is fading over time, it has somewhat tarnished Nestle's brand image.

The Group also faces some significant challenges and threats to its continued existence. The greatest threat, of course, comes from competition from the other retail giants, which is becoming increasingly strong, with market shares that are evolving negatively for Nestle to the benefit of its rivals.

Nestle also needs to find ways to reduce or at least maintain its current manufacturing and production costs despite the strict compliance rules that are becoming more and more burdensome, particularly for food products, and in an increasingly competitive market. Finally, production costs are also threatened by global water scarcity, leading to higher transport and treatment costs and reduced competitiveness.

In order to maintain its leadership over the long term and ensure that its share price continues to rise, Nestle must ensure that effective solutions are in place to address these challenges. For your part, and as an investor, you will of course have to keep an eye on the decisions taken by the Group, but also on the various innovations that could generate sufficient income to make up for these equally significant losses.

Frequently Asked Questions

How many shareholders does the Nestle Group have?

The Nestle Group currently has around 160,000 registered shareholders. However it is important to take into account the registration applications currently being processed, the holders of indirect shares in the form of certificates in the USA and the economic beneficiaries of shares held in trust which come to a combined total of over 250,000 shareholders for this group in 2020. Of course, the number of shareholders continues to grow in number.

When is the dividend payment date for Nestle shares?

As with many companies quoted on the stock exchange the Nestle Group proceeds with the payment and distribution of dividends on its shares once a year. This payment actually occurs after its approval at the Annual General Meeting. It is however the Board of Directors that is responsible for fixing the dividend payment date.   This date is generally a few days after the Annual General Meeting.

Since when have Nestle shares been quoted on the Stock Exchange?

On the 17 March 1873 the shares of the Anglo-Swiss Condensed Milk Co, one of the original two companies of Nestle, was quoted for the first time on the Zurich stock exchange. After the merger of this company with Henri Nestle SA the shares of the new company, Nestle & Anglo-Swiss Condensed Milk Co., were quoted for the first time on the 25 October 1905 on the Zurich Stock Exchange. They are now quoted on the SIX Swiss Stock Exchange.

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76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.