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