L’Oreal Stock Looks Set For A Rally On The Back Of Strong Earnings Growth

-1.95%
Downside
74.15
Market
72.71
Trefis
LRLCY: L'Oreal logo
LRLCY
L'Oreal

L’Oreal stock (OTCMKTS: LRLCY) is down around 1% in the past month (21 trading days), underperforming the S&P 500 which was up almost 6% over this period. LRLCY’s most recent FY ’21 earnings saw revenue rise to $35.9 billion, up strongly from $31.1 billion in FY ’20. Gross margins rose from 73.1% to 73.9% and operating margins rose from 18.6% to 19.1% over this period. This boosted net income and saw EPS rise from $8.11 in FY ’20 to $9.80 in FY ’21.

Now, is LRLCY stock set to continue its underperformance or could we expect a bounce back? We believe that there is a strong 63% chance of a rise in LRLCY stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on LRLCY Stock Chance of Rise.

Relevant Articles
  1. After Dismal Performance Last Month, L’Oreal Stock Looks Set To Rebound
  2. Forecast Of The Day: L’Oreal Makeup Revenues
  3. Down 13% In The Past Month, L’Oreal Stock Now Looks Like A Buy
  4. What’s Next For L’Oreal Stock After A 6% Rise Last Month?
  5. Up 27% In 6 Months, Is L’Oreal Stock Running Out Of Juice?
  6. At Multi-Year High Of $64, L’Oreal Stock Too Expensive?

Twenty-One Day: LRLCY -1.1%, vs. S&P500 5.7%; Underperformed market

(31% likelihood event; 63% probability of rise over next 21 days)

  • LRLCY stock lost 1.1% the last twenty-one trading days (one month), compared to a broader market (S&P500) jump of 5.7%
  • A change of -1.1% or more over twenty-one trading days is a 31% likelihood event, which has occurred 780 times out of 2516 in the last 10 years
  • Of these 780 instances, the stock has seen a positive movement over the next twenty-one trading days on 494 occasions
  • This points to a 63% probability for the stock rising over the next twenty-one trading days

Ten Day: LRLCY 3.3%, vs. S&P500 8.3%; Underperformed market

(22% likelihood event; 55% probability of rise over next 10 days)

  • LRLCY stock gained 3.3% over the last ten trading days (two weeks), compared to a broader market (S&P500) jump of 8.3%
  • A change of 3.3% or more over ten trading days is a 22% likelihood event, which has occurred 549 times out of 2516 in the last 10 years
  • Of these 549 instances, the stock has seen a positive movement over the next ten trading days on 300 occasions
  • This points to a 55% probability for the stock rising over the next ten trading days

Five Day: LRLCY -2.2%, vs. S&P500 2.7%; Underperformed market

(17% likelihood event; 63% probability of rise over next five days)

  • LRLCY stock lost 2.2% over a five-day trading period ending 3/29/2022, compared to the broader market (S&P500) which was up around 2.7% over this period.
  • A change of -2.2% or more over five trading days (one week) is a 17% likelihood event, which has occurred 429 times out of 2516 in the last 10 years
  • Of these 429 instances, the stock has seen a positive movement over the next five trading days on 269 occasions
  • This points to a 63% probability for the stock rising over the next five trading days

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

 Returns Mar 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 LRLCY Return -1% -18% 115%
 S&P 500 Return 6% -3% 107%
 Trefis MS Portfolio Return 5% -6% 270%

[1] Month-to-date and year-to-date as of 3/30/2022
[2] Cumulative total returns since the end of 2016

 

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