Is LVMH Stock a Buy?
It might be considered questionable behavior by some, but purchasing shares of luxury goods and fashion house LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY) amid the coronavirus crisis has worked out pretty well so far in 2020. After plummeting some 30% in late March along with the rest of the market, the stock has rallied and is up 1.5% this year to date -- capping a more than 160% run over the last five years. That's in stark contrast with other fashion brands like Coach and Kate Spade parent Tapestry (NYSE: TPR), which is down 51% so far this year.
Granted, LVMH shares aren't exactly cheap. Amid the pandemic, the global middle class that is the real driver behind the luxury brand's growth is taking a big hit. Nevertheless, for investors who think showing off one's financial means will make a rebound in the not-so-distant future, one could do far worse than LVMH.
Image source: Louis Vuitton.
Source Fool.com
