French stock alert

FRA

CLOSING UPDATE: L'Oreal up 3.1% in 2 days 21 September 2018 18:11 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, extended its gains on Friday, rising an additional EUR3.70 (or 1.8%) to trade at EUR206.10. Trading volume was 2.4 times average at the end of the day. The shares have risen EUR6.25 (or 3.1%) over the past two trading days vs. the CAC 40 Index which has risen 1.9% in the same period.

Technical indicators complementing today's significant uptrend:

+ The 4.1% discount to 12-month high of EUR214.90 against the 23.3% premium to 12-month low of EUR167.16 suggests the stock continues to push for new highs.

+ The stock has outperformed 87% of the French market over the past 6 months.

+ In the last three months the stock has hit a new 52-week high twice.

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

Undervaluation:

+ Price/Earnings of 29.4 [32.5]

+ Dividend yield of 1.7% [1.6%]

+ 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 negative 1.15 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

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 16.9%.

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

Overvaluation:

Price/Sales of 4.4 [3.3]

TODAY'S ALERTS

Afternoon Alert: L'Oreal up 2.4% in 2 days

21 September 2018 14:06 CEST

L'Oreal (FR:OR) extended its gains on Friday, rising an additional EUR2.30 (or 1.1%) to trade at EUR204.70. Trading volume was 3.2 times average so far today. The shares have risen EUR4.85 (or 2.4%) over the past two trading days vs. the CAC 40 Index which has risen 1.7% in the same period.

Afternoon Alert: L'Oreal increases 0.6% - outperforming 87% of stocks

21 September 2018 12:05 CEST

L'Oreal (FR:OR) has increased EUR1.30 (or 0.6%) today to trade at EUR203.70 and has outperformed 87% of the market in the past six months. A price rise combined with a high relative strength is a bullish signal.

RECENT ALERTS

CLOSING UPDATE: L'Oreal increases further 0.7% - outperforming 85% of stocks

20 September 2018 18:10 CEST

L'Oreal, France's 2nd largest personal goods company by market capitalisation, has increased EUR2.55 (or 1.3%) today to trade at EUR202.40 and has outperformed 85% of the market in the past six months. A price rise combined with a high relative strength is a bullish signal. Compared with the CAC 40 Index which rose 57.9 points (or 1.1%) in the day, this represented a relative price increase of 0.2%.

Afternoon Alert: L'Oreal increases 0.6% - outperforming 85% of stocks

20 September 2018 14:05 CEST

L'Oreal (FR:OR) has increased EUR1.25 (or 0.6%) today to trade at EUR201.10 and has outperformed 85% of the market in the past six months. A price rise combined with a high relative strength is a bullish signal.

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

ISIN: FR0000120321

PermID: 4295867384

Source: www.BuySellSignals.com