French stock alert

FRA

CLOSING UPDATE: L'Oreal increases 0.7% - outperforming 92% of stocks 20 June 2018 18:08 CEST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's French market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

L'Oreal, France's 2nd largest personal goods company by market capitalisation, has increased EUR1.50 (or 0.7%) today to trade at EUR209.20 and has outperformed 92% of the market in the past three months. A price rise combined with a high relative strength is a bullish signal. Compared with the CAC 40 Index which fell 18.3 points (or 0.3%) in the day, this represented a relative price increase of 1.1%.

Technical indicators complementing today's significant uptrend:

+ The positive 2.28 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 2.4% discount to 12-month high of EUR214.40 against the 25.1% premium to 12-month low of EUR167.16 suggests the stock continues to push for new highs.

+ In the last three months the stock has hit a new 52-week high seventeen times, pointing to a significant uptrend.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Return on Assets 10.8% [6.6%]

+ Return on Capital Employed 18.1% [15.7%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 2.2 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 13.3% in the last 3 years. This is better than the sector average of 9.8% and suggests a high margin of safety.

Note

Bearish Signals:

The price decreased 0.3% in the last week.

Tobin's Q Ratio is 3.3. Compared with the rest of the market the stock is overvalued and ranks in the bottom 7% of stocks by value of Q Ratio.

As per the Du Pont analysis, Return on Equity of 15.4% is lower than sector average of 16.8%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 4.5 [3.2]

TODAY'S ALERTS

Afternoon Alert: L'Oreal increases 1.1%, leads market higher

20 June 2018 14:04 CEST

L'Oreal (FR:OR) has increased 1.1% to trade at EUR209.90 vs. the CAC 40 Index which strengthened 12.2 points (or 0.2%) to 5,402.9. Representing a weighting of about 7.8% of the index, the stock accounted for 35.9% of today's gain. The shares have outperformed 92% of the market in the past three months. Trading volume was 86% of average so far today.

Afternoon Alert: L'Oreal increases 0.7%, leads market higher

20 June 2018 12:08 CEST

L'Oreal (FR:OR) has increased 0.7% to trade at EUR209.10 vs. the CAC 40 Index which strengthened 17.0 points (or 0.3%) to 5,407.7. Representing a weighting of about 7.8% of the index, the stock accounted for 16.3% of today's gain. The shares have outperformed 92% of the market in the past three months. Trading volume was 78% of average so far today.

RECENT ALERTS

CLOSING UPDATE: L'Oreal down 2.2% in 2 days

19 June 2018 18:12 CEST

L'Oreal, France's 2nd largest personal goods company by market capitalisation, extended its slide on Tuesday, shedding an additional EUR1.10 (or 0.5%) to trade at EUR207.70. The shares have fallen EUR4.60 (or 2.2%) over the past two trading days vs. the CAC 40 Index which has fallen 2.0% in the same period.

Afternoon Alert: L'Oreal down 2.2% in 2 days

19 June 2018 14:06 CEST

L'Oreal (FR:OR) extended its slide on Tuesday, shedding an additional EUR1.20 (or 0.6%) to trade at EUR207.60. The shares have fallen EUR4.70 (or 2.2%) over the past two trading days vs. the CAC 40 Index which has fallen 2.3% in the same period.

L'Oreal (FR:OR; EPA:OR; PA:OR; FP:OR)

ISIN: FR0000120321

PermID: 4295867384

Source: www.BuySellSignals.com