Opinions Shane Obata
NestleNSRGYBUYNov 10, 2021
NSRGY vs. UL Prefers Nestle. Buying the leader is often better than buying the catch-up trade. Nestle is holding or gaining market share in 60% of its categories. Exposed to high growth areas like pet food, nutrition, and coffee. UL is challenged. Mature consumer staples businesses are trying to hold onto market share, revenue growth isn't great, financial engineering helps the bottom line.
Shane ObataUnknown
$135.25
Stock price when the opinion was issued
$99.31
As of Jun 23, 2026. Market Open.
food processing
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PAST TOP PICK
(A Top Pick Jul 20/22, Down 6%)
Core holding. Safe, stable, defensive. Dividend payer and grower. The only currency that hasn't seen negative currency appreciation against the USD is the Swiss franc, and it's good to have exposure to it.
Darren SissonsOwned
food processing
DON'T BUY
NSRGY vs. UL Two quality names that have performed well over time, but relatively expensive. He prefers Danone, #1 in both dairy and plant-based, cheaper. Over the last decade, Danone has maintained its #1 position but has lost market share, stock's not up at all, slow to innovate. UL has outperformed Danone in the past decade. Real catalyst is new CEO who's made sweeping changes that will boost top and bottom line growth.
food processing
TOP PICK
Can pass through inflation costs. Rising dividend. Headquartered in a safe haven. Acquisitions have worked out. (Target price is in CHF.) Yield is 2.45%. (Analysts’ price target is $127.40)
Darren SissonsOwned
food processing
BUY
The USD has had a fantastic run, so why not buy these European companies that have so much of their sales in the U.S. You get them at a discount now, so they'll have the wind at their banks for the Euro and Swiss franc turn around against the dollar. He predicts a 5% lift in forex in the next 6-8 months. These companies have great balance sheets and cash in sectors that are global.
Kevin O'LearyOwned
food processing
BUY
It's a global giant. 50% of sales are in the US, and it's trading a discount to peers. This is on his capitulation list. A great trading name.
Kevin O'LearyOwned
food processing
BUY
NSRGY vs. UL He owns Nestle, reporting very good numbers and very good organic growth. The business itself is very good. Basically, it's a consumer tax. The premier story. He continues to buy for new clients. UL has been a relative underperformer, though with potentially more upside.
Darren SissonsOwned
food processing
HOLD
A new high today. A big food conglomerate. A drought and taking care of farmers is in the past. He prefers a different chocolate producer that works with farmers to give them a decent wage, and does not have governance issues. The dividend growth has not been all that high over recent years.
food processing
DON'T BUY
A fine company he has owned. He exited months ago. It's defensive, so it won't do well in an improving economy. That said, we may be a recession, but recessions always end, and market discount the end of a recession 3-6 months in advance, probably ending June 30 or Sept. 30. Therefore the market needs to bottom in coming months. To get exposure in an improving economy, it's too early to enter this. But this is worth looking at. You need to own defensives, not just tech. Costoco is more offensive, which he prefers over Nestle, among consumer staples.
food processing
BUY ON WEAKNESS
Track record very good. Huge run last year. Only issue is sheer size. Higher weighted stocks get both positively and negatively impacted in ETFs. So you may get a better entry point. Great company. Good story long-term. Yield is 2.6%.
Darren SissonsOwned
food processing
HOLD
The challenge of this one is what entry level do you pick? He owns it and continues to like it. It owns skin care and pharma interests, that represent 10% of the company value that may be sold off one day. He thinks this is a solid global consumer holding.
Darren SissonsOwned
food processing
HOLD
On a 3-5 year time horizon you would be safe to hold it. Consumer staples have had a good run this year. He could see a 3-5% pullback in the consumer space, however. A good blue-chip dividend payer and grower. It trades at about 20 times earnings, but its earnings are growing at about 10%.
food processing
BUY
They had a phenomenal year last year. It's a company you can buy and put it away. A good staple with steady growth. They are looking to reinvigorate the product lines. They also own L'Oreal and other indirect stakes that are great.
Darren SissonsOwned
food processing
