Carrefour Rose 6.3%, Performing in Line with Expectations



FEZ’s top performers

Carrefour (CRRFY) emerged as one of the SPDR Euro STOXX 50 ETF’s (FEZ) top performers on January 22, 2016. It came in behind Repsol and ahead of Telefonica (TEF), Orange (ORAN), Banco Santander (SAN), and Total (TOT).

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Reasons behind Carrefour’s performance

Below are some reasons for Carrefour’s performance:

  • Carrefour declared its fourth quarter results, performing in line with investors’ expectations.
  • Its sales picked up in key European markets, whereas its revenue declined in Latin America and China.
  • Its sales growth was a little bit down in France, due to the Paris attack in November.
  • Sales in the fourth quarter declined 0.8% due to the negative currency effect.
  • France’s total sales stood at 10.7 billion euros. Sales in Latin America were down 14% due to a slowdown in Brazil (EWZ). They were down 7.5% in China (FXI).

Carrefour’s returns

Carrefour is currently trading at 25.3 euros. Its 52-week high is 33.2 euros. Its 52-week low is 23.2 euros. The stock returned 6% in 2015. Its price-to-earnings ratio is 19.16x, which is cheaper than the ratio for its peer Danone (DANOY).

Carrefour is trading 8% below its 100-day moving average, 6% below its 50-day moving average, and at par with its 20-day moving average. The 100-day moving average is a strong resistance point for the stock. It hasn’t been able to cross its 100-day moving average in the last two months. Analysts’ estimates indicate an upside of 22% for Carrefour over the coming 12-month period from its current levels as of January 22, 2016.

In the next part of this series, we’ll analyze the performance of FEZ’s telecommunication industry.


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