Introduction
In this month’s Opportunity Report, we profile another recent spinoff (a fertile hunting ground for potential undervalued stocks) whose product portfolio features ubiquitously known consumer products brands, many of which are the most trusted in their fields and have been on the market for several decades. The company claims that >1 billion people around the world use its products, and chances are good that at least one of them is in your house right now.
Despite incredible brand recognition, most people would be hard-pressed to correctly identify its corporate name. The shares are down roughly 30% from their 52-week high, owing largely to certain litigation risks that now appear overblown after proceedings have trended meaningfully in the company’s favor in recent months. 2023 was a major transition period for the business, and with most of the heavy lifting behind it we see a healthy long-term outlook for the company. With an inexpensive valuation, growth opportunities, and a dividend component, we think double-digit total returns over the next few years are within reach.