Can you be enthusiastic about luxury brands in fashion, spirits, cosmetics, watches and jewelry? Then you are probably one of the customers of the market leader in the luxury segment, the French company LVMH Moët Hennessy – Louis Vuitton SE – short LVMH.

A huge brand empire with resilience! LVMH (Louis Vuitton Moët Hennessy) bundles an impressive range of luxury brands such as Louis Vuitton, Moët & Chandon, Dior and Tiffany. This allows for stable prices to be maintained even in difficult times. The company based in Paris remains profitable despite the loss of the important Russian market and the consumer slump in China and shows resilience in times of crisis. Investors who have been involved for a long time can look forward to significant increases in dividends.

Stable sales and profit development! Sales and profits have been showing steady increases for many years. In the third quarter of 2023, LVMH increased its sales by 9 percent organically, while analysts had expected 11.9 percent. The increase from 19.8 billion EUR to 19.96 billion EUR is impressive, even though analysts had 21.15 billion EUR on their list. Other companies would love to have such problems!

LVMH corporate development; Source: aktienscreener.com.

What does the chart say? Since mid-July the security has been in a downward-facing trend channel. The last daily candle shows a strong countermovement. For a long entry, however, it is still too early. Wait until the blue 50-day line is horizontal and make sure to secure your trade with a stop loss if it continues downwards.

LVMH share (ISIN FR0000121014) – 1 year in daily chart; Source: aktienscreener.com

Conclusion: Fundamentally, the sell-off at LVMH is not understandable, so the share may be undervalued. However, we should wait for concrete buy signals for a long entry.