3 Luxury Stocks to Watch

3 Luxury Stocks to Watch

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A few weeks ago I posted 6 charts to consider – while it was more related to the housing shorts that I have they relate to this post today as well. 

The top 3 luxury stocks to watch right now are: 

  • LVMH (Louis Vuitton & More)
  • RACE (Ferrari)
  • RH (Restoration Hardware)

Personally, I really stay out of this space as far as longer term investments go but it’s interesting to see the correlation to consumer spending and credit card debt compared to the share prices of these names. 

Obviously, these were great buy and holds from 2020 but it seems as if the market is pricing some things in, at least with two of them.  

LVMH - Louis Vuitton Etc.

The price appreciation from 2020 until recent was unprecendented but we’re well off the highs. The lines were wrapped around the mall for many of the brands within this co. but have since dissapperared. 

Something to watch.


RACE - Ferrari

Personally, my favorite car/race brand and recently the CEO note that more than a third of buyers are under 40.

This year was also a record sales year for them and orders are booked out until 2025. This probably makes it into the TLV Report end of the year or when we can re-price a but more into mid $200s. 


RH - Restoration Hardware

RH is set to experience a 55% decline in EPS this year and noted that luxury furniture markets will be under stress in 2024 as well. 

While the stock was relatively flat in 2022 and given relocations and spending from Covid the pullback seems warranted but this is something to watch.


Final Word

I am neither long/short any of these names but there were interesting to look through as of recent.

As noted above, RACE (Ferrari) is actually one that is of interest if it can reprice in the near future but for now these are just 3 luxury stocks to keep an eye on for a gauge into consumer spending. 

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About the Author

Daniel Bustamante is the founder, managing partner, and CIO of Bustamante Capital L.L.C., a multi-strategy hedge fund management firm based in San Juan, Puerto Rico. He has over 10 years of experience in the financial industry, specializing in equities, futures, and event-driven trading strategies.

He is also the founder of TheLongVol.com, a blog and newsletter that shares his insights on his investing process, travel, and other private investments. He has been featured in Bloomberg, Arizona Business Journal, Business Insider, Yahoo! Finance, Forbes, Seeking Alpha, and other publications over his career on Wall Street.


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