Saint-Gobain Shares Dip Below €78 as Brent Climbs Above $103
Saint-Gobain's stock falls 1.67% to €77.86 in early afternoon trading, within a CAC 40 that is down 1.15%. The session is marked by geopolitical tensions in the Middle East and Brent crude at $103.56. The company ranks 32nd in the Paris index, placing it in the top 10 biggest declines.
Decline Aligned with Geopolitical Pressure and Construction Sector Trends
The stock falls below the €78 mark following a 7% rebound on May 6 amidst easing tensions between the USA and Iran. Today, this movement reverses with Brent crude rising above $103, amid a diplomatic deadlock between Washington and Tehran.
The sectoral context remains challenging for construction materials. The construction climate in France was measured at -18.0 by Eurostat in April, with a year-on-year production decline of 3.5% and French order books at -33. The company, headquartered in Courbevoie and led by Benoit Bazin, operates in a persistently depressed European construction cycle.
Over the week, Saint-Gobain has barely moved (+0.28%), but the decline reaches 11.54% over three months and 21.31% over a year.
Stock Reaches its 20-Day Moving Average, Valuation and Calendar as Reference Points
The price is at its 20-day moving average of €77.71, exceeding it by 0.19%. Above, the resistance at €81.44, approached during the peak on May 6, now caps any rebound attempts. The RSI at 55 remains neutral. The 200-day moving average at €85.65 is 9.1% above the current price, indicating a still bearish medium-term trend.
In terms of valuation, the stock is trading at approximately 12.1 times the earnings expected for the current fiscal year and 11.0 times those of the next year, compared to a sector average 'Industrials' at 18.4 times according to consensus data from May 6 (13 analysts surveyed). The expected growth in earnings per share between the two fiscal years is 9.5%.
The next key date in the financial calendar is the 2026 general assembly, scheduled for July 4, followed by the first semester results on July 30.
