The recent downward movement has sent LVMH Moët Hennessy - Louis Vuitton SE shares back to attractive levels situated around 380 EUR. This zone could put an end to the downward movement and offers a good timing for new long positions.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 382 EUR in weekly data.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● The company returns high margins, thereby supporting business profitability.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 382 EUR
Weaknesses
● The company's enterprise value to sales, at 3.75 times its current sales, is high.
● With a 2020 P/E ratio at 24.44 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● Analysts covering the stock have recently lowered their earnings forecast.
LVMH Moët Hennessy Louis Vuitton SE is the world leader in luxury products. Net sales break down by family of products as follows:
- fashion and leather items (48.9%): brands such as Louis Vuitton, Kenzo, Celine, Fendi, Marc Jacobs, Givenchy, etc.;
- watches and jewels (12.8%): Bulgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred brands, Tiffany, etc.;
- perfumes and cosmetics products (9.6%): perfumes (Christian Dior, Guerlain, Loewe, Kenzo brands, etc.), makeup products (Make Up For Ever, Guerlain, Acqua di Parma, etc.), etc.;
- wines and spirits (7.7%): champagnes (Moët & Chandon, Mercier, Veuve Clicquot Ponsardin, Dom Pérignon brands, etc.; No. 1 worldwide), wines (Cape Mentelle, Château D'Yquem, etc.), cognacs (mainly Hennessy; No. 1 worldwide), whisky (mainly Glenmorangie), etc.;
The remaining sales (21%) are from selective distribution through the Sephora, DFS, Miami Cruiseline chains and Le Bon Marché and La Samaritaine department stores.
At the end of 2023, products are marketed via a network of 6,097 outlets located throughout the world.
Net sales are distributed geographically as follows: France (7.9%), Europe (16.4%), Japan (7.3%), Asia (30.8%), the United States (25.3%) and other (12.3%).
LVMH 
