Why LVMH Stock Was Climbing Today

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LVMH gets a leg up Luxury stocks have struggled in the current environment amid weak consumer spending in China and pressure from the trade war, but now one of Wall Street's most respected institutions thinks the sell-off has gone too far

This morning, Goldman added LVMH to its European Conviction Buy list, arguing that investors should look through second-quarter softness and calling LVMH "a winner in the next luxury upcycle. " LVMH's first-quarter revenue results were disappointing as organic revenue was down 3% to 20. 3 billion euros

What's next for LVMH The luxury goods sector is sensitive to the same set of economic factors, including spending in China, the general economic cycle, and the stock market

However, luxury goods LVMH's wide range of brands are also known for timelessness, and the company has a long history of riding out economic volatility and continuing to grow

While Goldman Sachs might be premature in the timing of its call, given the highly fluid trade situation, the stock looks well priced at a price-to-earnings valuation of 19

With the stock down by nearly a third over the past year, LVMH should eventually bounce back, and that could come sooner rather than later if the global economy can absorb the trade shifts

Jeremy Bowman has no position in any of the stocks mentioned

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