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2 Global Luxury Stocks at Non-Luxury Prices

Despite short-term headwinds, Swatch Group is well-positioned to outperform its competitors, and LVMH's diversification should steel it against sector downturns.

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Paul Swinand: Right now, we're seeing a lot of worry in the global luxury sector. There are global macro issues: protests in Hong Kong, the crisis in Russia, Middle East tourism has been affected by the Syrian situation. So, there are a lot of worries in global luxury right now.

We think actually that, for once, this sector is starting to look more attractive because the valuations have come in. Among the group, our favorite pick is actually Swatch Group (SWGAY). Although there are some near-term negatives, we think that in the long run Swatch should outperform other groups such as Richemont.

Paul Swinand does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.