Unilever stock price gains 8% on surging sales of hygiene products

Shares of Unilever (AMS: UNA) surged 8% today to hit a new 4-week high after reporting a rise in net earnings for the first half of the year. 

Fundamental analysis: Hygiene products in demand

Unilever reported its underlying sales slipped 0.3% for a quarter ending June 30, easily beating the analysts' forecast of a 4.3% drop. In the United States, Unilever’s biggest market, the Anglo-Dutch saw its sales rise 7.3% with volume up 20% for the reported period. 

Looking at the first half of the year, Unilever inked 25.7 billion euros in sales, down 1.6% compared to a year ago. However, total net income rose 10% to 3.5 billion euros. 

Unilever also noticed a surge in demand for its food products, with the firm owning many popular brands, such as Breyers, Magnum, Klondike ice-cream, Hellmann's mayonnaise and Knorr soups.

Unilever’s biggest unit - beauty and personal care - recorded a dip in sales, although the demand for hygiene products surged amid the pandemic. The firm said its sales of skin-cleansing products rose 27% in the first half of the year. 

Technical analysis: New 4-month high

Unilever stock price surged 8% to hit 50.90, the highest level recorded since early March. The price action is now fighting to close above the 50.60 mark, which is a former resistance. A clean break above this figure would open the door for a more substantial move higher.

The buyers are likely to target the 2020 high above the 55.00 handle as their next target. As seen in the daily chart, the price action has also broken above the descending trend line. If it can stay here beyond this week, Unilever share price could be trading in the bullish mode in the time ahead.

Summary

Unilever stock price surged 8% to hit a new 4-month high after the Anglo-Dutch giant reported a rise in its net income by 10%.