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Moving Average Analysis of FEZ’s Personal Care Industry

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Personal care industry

The personal care industry provided a 3.7% return to the SPDR Euro STOXX 50 ETF’s (FEZ) performance on December 15, 2015. Personal care stocks like L’Oreal (LRLCY) and Unilever (UN) rose by 4.2% and 3.3% on the same day. Other stocks like Sanofi (SNY) and Total (TOT) rose by 5.3% and 4.2% on the same day.

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Reasons behind the stocks’ performance

  • L’Oreal’s CEO, Jean-Paul Agon, received WWD’s Beauty Inc 2015 Vision of the Year award. Agon received the award for his contribution to the company. L’Oreal remained on top. It increased its global presence, despite the tough economic conditions.
  • On Tuesday, December 15, 2015, Unilever announced that it’s reformulating its Pepsodent toothpaste to offer three levels of protection to fight against cavities. It took this step after the World Health Organization’s report. The report stated that in Ghana, 96% of adults within the age 35–44 were affected by periodontal diseases.

L’Oreal and Unilever’s moving averages

L’Oreal and Unilever’s YTD (year-to-date) returns were 14% and 21%, respectively, as of December 15, 2015. Their quarterly returns were 22% and 10%, respectively, as of December 15, 2015.

L’Oreal is trading 2%, 4%, and 3% below its 100-day, 50-day, and 20-day moving averages, respectively. Unilever is trading 2% above its 100-day moving average. It’s trading 2% and 3% below its 50-day and 20-day moving averages, respectively.

Analysts’ estimates

Over the next 12-month period, analysts’ estimates indicate upsides of 5% for both L’Oreal and Unilever from the current levels as of December 15, 2015.

In the next part, we’ll discuss how the Japanese market (EWJ) performed on December 15, 2015.

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