L'oreal is one of the largest manufacturers of personal care products in the world. Founded in 1909, it is headquartered in Clichy (France). Brands of the company include Maybelline, Redken, The Body Shop, NYX. Many of them have become some of the most popular in the market. L'oreal operates in over 140 countries around the world.
The LRLCY stock price is influenced by many factors, the main of which is consumer demand. High competition in the cosmetics and perfumery industry pushes manufacturers to open new product lines. L'oreal has been expanding its range of products for more than a century, creating new brands to expand its consumer base. However, global financial crises could negatively affect its financials. During pandemics and economic crises, the demand for cosmetics falls, which may negatively affect the value of the LRLCY stock rate.
When trading LRLCY stock, traders should follow the news about the company and its main shareholders. If a major shareholder decides to sell its shares, it may affect the LRLCY price. While big acquisitions by L'oreal will be a bullish factor for the stock price, various scandals involving the company will be a bearish one. L'oreal has been accused of false claims about the effectiveness of its products and had to stop some of its marketing campaigns after several investigations. This had a negative impact on L'oreal stock price.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
Sell | 398.05 |
Buy | 398.15 |
1-day change | 4.3(1.09%) |
Earn from the fluctuations of prices and boost your income with LiteFinance!
The company's history began with one of the first hair dyes. Eugène Schueller, the founder of the L'Oréal Group, formulated, manufactured, and marketed it to Parisian hairdressers. Today, L'Oréal Luxe, professional products, and active cosmetics are the major divisions L'Oréal operates through. The company markets its products using distribution channels, including mass-market, branded retail, travel retail, hair salons, and perfumeries; department stores and pharmacies, as well as e-commerce. The company uses a universalization strategy. It means that it considers the needs, traditions, and desires of customers in different parts of the world and creates products that account for these differences.
When you trade the company's shares, you should pay attention to its rivals. Top L'Oréal alternatives are Yatsen Holding, Avon Products, Estee Lauder, Revlon, and Coty. If they manage to outperform the company, it may lead to a reduction in L'Oréal's sales. Moreover, competitors' financial stability can be used as a barometer for the overall industrial environment.
L'Oréal pays dividends to its shareholders. The overall dividend policy is "increase". The stock price is quite low. Thus, investors may be attracted to #LRLCY shares. However, this is not the only option to deal with the stocks. You can apply CFD trading. Traders should keep in mind that LRLCY stocks are highly volatile.
When trading the company's stocks, you should be aware of its financial stability. For instance, L'Oréal's revenue and earnings per share have been rising for over a decade at a good pace. Although the rates aren't too high, the company's stability is confirmed. The company's product line targets both the luxury and consumer staple markets. This creates diversification and allows the corporation to stay afloat.
Traders should check analysts' reports constantly as the company's stock price was often considered too high. This is always a sign of a possible downward correction.