EssilorLuxottica breaks above €186.90 and extends its recovery
EssilorLuxottica extends its sharp rebound in a well-oriented CAC 40 late in the afternoon. The stock has just moved above a technical level that had halted it last week, following a recovery under way since the publication of its quarterly sales.
A €186.90 level broken and now acting as support, with a marked gap to the moving averages
The EssilorLuxottica stock gains 2.33% to €188.55 and broke through its resistance at €186.90 during the session, a level that corresponds to its highest of the last 30 sessions. The price holds above it, which makes this level a support.
The stock is above its three moving averages: the gap is 13.41% with the MA20 and 3.23% with the MA200, which the price has just reclaimed.
The RSI at 71 signals an overbought configuration, after a 32% gain over one month. The next resistance is at €215.70. The CAC 40 rises 2.09% over the session, with EssilorLuxottica ranking in line with the index average.
Sales up 7.2% in the third quarter and a €1.2 billion share buyback over twelve months
The stock's rebound dates from the publication of third-quarter revenue on 20 October: €7,486 million, up 7.2% at constant exchange rates. The direct-to-consumer segment grew 10.6% in the third quarter, and myopia management solutions rose 24% over nine months.
S&P subsequently raised the group's credit rating to A+, with a stable outlook. Despite this recovery, the stock still falls 40.5% over one year.
On the shareholder return front, the group repurchased €1.2 billion of its own shares over twelve months, or 1.3% of its market capitalization. The analyst consensus remains the benchmark to watch to gauge the continuation of the rebound.
