Top CAC 40 shares to watch: LVMH, Kering, Hermes, Airbus, Société Générale

The CAC 40 Index has moved sideways in the past few weeks. It has slipped from this month’s high of 8,561 to the current 8,337. It reacted to several French corporate earnings and the European Central Bank (ECB) interest rate decision. 

This consolidation may continue in the near term as investors react to key earnings by companies like LVMH, Kering, L’Oreal, Safran, Essilor, Hermes, Airbus, Schneider Electric, Societe Generale, Sanofi, and AXA. 

LVMH, Kering, and Hermes will be the top CAC 40 Index stocks

Top luxury brands will be in the spotlight next week as the three big ones publish their financial results.

These numbers come a few days after Richemont, the parent company of Cartier, released strong numbers, pushing its stock to its highest level in years. Watches of Switzerland, a retailer that deals with luxury watches, released strong numbers.

LVMH, the biggest company in the industry, will release its numbers on Monday, while Kering and Hermes will report in the next two consecutive days. Traders will watch these earnings for details on whether the companies are growing. 

These numbers come at a time when their stocks remain under intense pressure. LVMH stock has plunged by over 30% from its highest point last year. Similarly, Kering, the parent company of Gucci, has slumped by 32% from last year’s high. Even Hermes International has slumped by 29%. 

A key bullish aspect for these companies is that China, Japan, South Korea, and the United States are seeing higher demand. 

Airbus 

Airbus is another top CAC 40 stock to watch next week as it publishes its financial results. These numbers come after the recent Farnborough Airshow, where top airlines made some orders. Airbus received 154 firm and provisional orders, lower than the 173 that Boeing received.

The results come as the Airbus stock has jumped by nearly 30% from its lowest level this year. Analysts believe that the company’s revenue will come in at €20.2 billion, with its Airbus brand making €15.2 billion. Helicopters and defence & space businesses are expected to bring in €2.1 billion and €3.31 billion. Its net income is expected to be over €1.58 billion.

The upcoming results will provide more color on how the company is handling its business and whether it is addressing the supply chain issues well. It recently announced a 5 billion euro buyback and boosted its targets.

Société Générale

Société Générale stock has done well in the past few months, moving from a low of 59 euros in March to the current 76.37 euros.

The company, which is valued at $64 billion, will publish its financial results on Thursday next week. These numbers come at a time when European and US banks have continued to do well. 

BNP Paribas, a top competitor, published strong numbers on Thursday. These results showed that its profits jumped by a third, helped by its trading boom. Its net income jumped to 4.3 billion euros, while its revenue jumped by 12% to 14.1 billion euros. Unicredit also published strong financial results. 

Many other CAC 40 Index constituents will publish their results next week. This includes top names like Schneider Electric, Sanofi, Capgemini, and L’Oreal.