Despite a positive yearly outlook, the Nestlé ADR stock continues to face pressure as it approaches the upcoming quarterly earnings report. The stock closed at 92.20 euros on Friday, April 4, 2025, reflecting a weekly loss of 1.50 percent. This downward trend, which began at the start of April, follows a nearly 2 percent drop in the previous month. The situation is particularly notable given the upcoming annual general meeting scheduled for April 16, 2025, and the first quarter financial results set to be released on April 24, 2025.
Analysts are currently divided on the future performance of Nestlé. On April 4, the stock was downgraded, but the day before, another analyst firm had upgraded it. Among the 23 analysts monitoring the stock, 52.2 percent recommend holding the shares, while 39.1 percent express optimism, and only 8.7 percent are pessimistic. The average price target stands at 90.78 Swiss francs, slightly below the current trading level. Despite the recent weakness, the stock has recorded a 15.54 percent increase since the beginning of the year and remains 17.90 percent above its 52-week low from January 2025.
Fundamental strengths such as upwardly revised revenue expectations are counterbalanced by weaknesses like a high valuation relative to generated cash flow. The recent analysis from April 7 indicates a pressing need for action among Nestlé ADR shareholders. Investors are left to ponder whether it is time to buy or sell their shares based on the latest data.
On the same day, the Swiss Market Index (SLI) also experienced a significant decline. At 09:12, the SLI was reported to be 7.41 percent weaker at 1,727.92 points. The index began Monday trading with a loss of 7.36 percent, starting at 1,728.79 points, down from 1,866.22 points the previous day. During the trading session, the index dipped to a low of 1,725.52 points, marking a stark contrast to its highest point of 1,847.69 points earlier in the day.
Looking back, the SLI was at 2,118.80 points a month ago on March 7, 2025, and 1,956.28 points three months ago on January 7, 2025. Notably, the SLI has recorded a 10.08 percent decline since the beginning of the year, having reached a yearly high of 2,146.62 points and a low of 1,725.52 points.
Among the strongest stocks in the SLI, Lindt saw a decrease of 3.12 percent, trading at 11,500.00 CHF, while Sonova dropped by 4.14 percent to 226.80 CHF. Other notable declines included Schindler (-4.55 percent to 255.80 CHF), Swisscom (-4.59 percent to 494.20 CHF), and Geberit (-4.82 percent to 505.80 CHF). On the other hand, the biggest losers in the SLI were Sandoz, plummeting 16.97 percent to 27.40 CHF, followed by Swiss Life (-13.27 percent to 660.00 CHF), Swiss Re (-12.04 percent to 122.00 CHF), Holcim (-11.86 percent to 75.50 CHF), and ams-OSRAM (-11.51 percent to 5.21 CHF).
Notably, Nestlé remains the most traded stock in the SLI, with 1,252,038 shares exchanged. It holds a significant market capitalization of 240.407 billion euros within the index. According to FactSet estimates, the lowest price-earnings ratio (P/E) in the SLI for 2025 is projected to be for Adecco SA at 9.74, while the same company is expected to offer the highest dividend yield in 2025 at 6.13 percent.
As the trading day progresses, the Nestlé stock is firmly in bear mode, having lost 5.4 percent to 82.62 CHF in the SIX SX session. By 09:28, the stock had fallen to this level, marking it as one of the day’s significant losers in the Swiss Market Index, which is currently at 10,834 points. The stock's losses extended to a daily low of 81.91 CHF, having opened at 83.62 CHF. Up to this point, 1,246,398 Nestlé shares have been traded today.
The stock previously marked its highest level in the past 52 weeks on June 8, 2024, at 98.62 CHF, which is 19.37 percent above its current price. Conversely, the 52-week low was recorded on December 20, 2024, at 72.82 CHF, indicating that the current price is 11.86 percent above this low. The dividend forecast for the current year stands at 3.09 CHF, compared to 3.05 CHF per share received by Nestlé shareholders the previous year.
Looking ahead, Nestlé is expected to release its financial results for Q2 2025 on July 24, 2025, while the anticipated publication of Q2 2026 results is set for July 23, 2026. Analysts project that the earnings per share (EPS) for 2025 will amount to 4.54 CHF. As investors navigate this challenging landscape, the performance of Nestlé and the broader market will be closely watched in the coming weeks.
