While most listed companies are active in the fields of finance, the media or new technologies, the cosmetics sector is not to be outdone either. L’Oréal is one of the most popular groups in this field, and whose share performance is particularly interesting for traders. Find out why choosing L’Oréal for trading and how to optimize your chances of winning
Good financial health
Il faut savoir, avant tout, que le groupe L’Oréal est le leader mondial dans le secteur du cosmétique. Il n’y a ainsi rien à dire sur sa santé financière, puisque chaque année, cette entreprise française génère plusieurs dizaines de millions d’euros de chiffre d’affaires et ses bénéfices sont des plus confortables et ne cessent d’évoluer.
The activity of this world-renowned group is mainly focused on the manufacture and marketing of cosmetics and dermatological products.
The company’s products are distributed under recognized brands around the world such as Kérastase, Garnier, L’Oréal Paris, Lancôme, Maybelline and Laboratoires Vichy. 96.2% of sales are generated by the marketing of these cosmetic products, and at the end of 2015, L’Oréal also signed the The Body Shop brand, which represents approximately 3.9% of its turnover in cosmetics of natural origin.
Listed on the CAC 40, L’Oréal shares have experienced an almost permanent upward trend in recent years. If the share price was €154.70 on April 1, 2016, its cost rose to €168.50 18 days later, despite a few occasional lows.
With overall variations tending to increase, analysts’ forecasts for this stock are positive, especially over the long term. Traders can therefore expect good investments, especially since the group’s turnover, which stands at €25,671 million in 2016, could reach €26 million or more by 2017.
However, despite the advantages of the L’Oréal share, it is still essential to establish trading strategies before launching into the market. Listed on the CAC 40, this share changes according to the economic situation and, in order to make good speculation, indicators such as GDP in France, or the unemployment rate, among others, must be taken into account. It is also necessary to analyse the price evolution history in order to establish estimates. Various tools are available to online brokers and, especially for beginners, trading courses also provide a better understanding of the market, whether as a binary option or as a CFD on equities.