now investing in esso
8/11/2025 03:07pm
**Investing in EssilorLuxottica (ELWS) presents a compelling opportunity**, considering the following factors:
1. **Strategic Acquisitions and Market Expansion**: EssilorLuxottica has recently acquired companies like Automation & Robotics, enhancing its footprint in Southeast Asia and Europe. These acquisitions align with its med-tech strategy and are expected to contribute to its growth trajectory.
2. **Revenue Growth and Resilience**: Despite a challenging economic environment, the company reported a 7.3% revenue growth in Q1 2025. The acquisition of PUcore in July 2025 is also expected to strengthen its vertically integrated supply chain.
3. **Smart Glasses and Wearable Technology**: The company's foray into smart glasses, particularly through its partnership with Meta, presents a significant growth opportunity. Ray-Ban Meta smart glasses have seen a tripled sales increase in the first half of 2025. EssilorLuxottica aims to manufacture 10 million units by next year, which could lead to substantial revenue contributions.
4. **Financial Health and Investor Confidence**: The company successfully issued 1 billion euros in bonds, which was oversubscribed, indicating strong investor confidence. Additionally, the acquisition of Meta's stake in EssilorLuxottica for an estimated 3 billion euros further boosts investor confidence.
5. **Technical Indicators and Market Position**: The company's technical indicators are positive, with a buy signal from moving averages and a strong sell outlook from MACD. This suggests that the stock may have a potential upside based on technical analysis.
6. **Dividend and Shareholder Returns**: EssilorLuxottica has a history of paying dividends, although the growth rate has been negative. The company's dividend yield is 1.8%, which is modest but provides an income stream for shareholders.
In conclusion, EssilorLuxottica's strategic moves, revenue growth, smart glass initiative, strong financial position, and technical indicators make it an attractive investment. However, the negative dividend growth and the high P/E ratio should be considered. Investors should monitor the company's execution of its strategic plans and the performance of its new acquisitions.