3 Luxury Stocks That Could Benefit From NFT And Metaverse Hype By Investing.com


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Investing.com – Luxury stocks are attracting increasing interest from investors. Reason: famous brands like barbaric And keyring Or, Ralph Lauren is looking for ways to capitalize on the hype surrounding the Metaverse, which is fusing mixed reality (MR) with social gaming, e-commerce, and blockchain. It’s no surprise that many luxury brands are investing more than ever in Metaverse to increase their digital footprint.

Morgan Stanley analysts estimate that non-fungible tokens (NFTs) and social games are likely to expand the market for treatable luxury goods by more than 10 percent in eight years. This could lead to an additional $50 billion in sales by 2030. Metaverse is also expected to increase corporate earnings before interest and taxes by about 25 percent.

Experts estimate that “as more and more aspects of people’s lives turn online, the demand for digital fashion and luxury goods will increase exponentially in the coming years.” Morgan Stanley (NYSE :).

While the Metaverse will likely take a few more years to develop, analysts say, “NFTs and social gaming represent two near-term opportunities for luxury brands.”

With that in mind, here are three luxury stocks that could benefit from the Metaverse and the ongoing hype surrounding NFTs as the year progresses:

1. Keyring

  • 1 year performance: -1.8 percent
  • spanning 52 weeks: 523.8 to 798 euros
  • Market value73.63 billion euros
  • profit return: 1.52 percent

In a Paris-based company keyring (PA:) is the world’s second largest luxury goods conglomerate. Its brands include Gucci, Alexander McQueen, Balenciaga and Yves Saint Laurent.

Meanwhile, Gucci has partnered with gaming platform Roblox (NYSE:), allowing players to purchase Gucci’s digital items within games. In the middle of last year, a digital Gucci handbag was resold for more money than its real counterpart. Additionally, Balenciaga maintains a partnership with Epic Games to sell in-game merchandise for the game Fortnite online.

Kering delivered compelling full-year results for 2021 in mid-February, with sales increasing 35% year-over-year to €17.64 billion. Management noted above all else the standard operating result, which increased by 60 percent.

Kering’s stake is currently around €593 and has fallen about 2% over the past year. Since the beginning of the year, the price has already lost 16 percent in value terms. Kering shares are trading at 18.4 times forward earnings and 3.7 times forward sales. The 12-month price target set by 27 analysts surveyed is €796.72 for Kering shares.

According to InvestingPro’s quantitative modeling, Kering’s current fair value is $811.63. As of today, this results in a potential return of approximately 36.6 percent.

2- Ralph Lauren

  • 1 year performance: -1.5 percent
  • spanning 52 weeks: $100.44 to $142.06
  • Market value: 8.48 billion dollars
  • profit return: 2.31 percent

Our second address is a New York based company Ralph Lauren (NYSE :), which is one of the most famous luxury brands in the USA. The product range includes clothing, footwear, homeware, perfume and jewellery.

Ralph Lauren incorporates elements of the non-fungible tokens (NFT) into new collections. The company recently launched The Ralph Lauren Winter Escape in partnership with Roblox. Players can now purchase clothes from virtual polo stores in order to customize their avatars.

The luxury brand released its figures for the third quarter of its fiscal year 2022 in early February, and sales grew 27 percent year-over-year to $1.8 billion. Adjusted net income was $218 million, compared to $125 million in the same quarter last year. Cash and cash equivalents at the end of the period amounted to $3 billion.

Ralp Lauren shares are currently trading in the $120 range and are down 1.5 percent over the past 12 months. Since the beginning of the year there has been an increase of 0.3 percent. The shares are currently trading at 13.2 times forward earnings and 1.3 times forward sales. The average price forecast for Ralph Lauren for the next 12 months is $141.99.

According to InvestingPro, the Ralph Lauren paper has a fair value of $157.83, which results in a potential return of 32.4 percent.

3-barbarian

  • 1 year performance: -18.9%
  • spanning 52 weeks: 1534.5 to 2,267p
  • Market value: 6.72 billion pounds sterling
  • profit return: 3.19 percent

Our final premium stock comes from the UK. London Company barbaric (LON 🙂 operates globally in the fields of apparel, perfume and fashion accessories.

In August 2021, the luxury brand began collaborating with Mythical Games. An NFT vinyl game version of the iconic Sharky B has been released. All 750 NFT copies were sold out within 30 seconds. Burberry also made a 3D version of the deer mascot on China’s Singles’ Day.

In mid-January, Buberry released its financial results for 2021. Annual sales totaled £2.34 billion, down 11% year-on-year. In the Asia Pacific region, sales increased by more than 15 percent. However, in other regions of the world, double-digit sales losses were recorded.

Burberry shares are currently hovering around 1,698.5 pence. Over the course of 12 months, the price is down nearly 19 percent. Shares of the British clothing retailer are trading at 17.9 times forward earnings and 2.4 times sales. For the next 12 months, the median analyst price forecast for Burberry is 2,078 pence.

The fair value of Burberry is currently in the range of 2,370 pence (+38.7 percent).

InvestingPro is the in-house and fully customizable analysis tool for the Investing.com financial platform. In addition to exclusive data on a large number of national and international stocks, you can easily calculate the fair value of your favorite stocks using several quantitative models. Try it now for seven days for free.

notice: The content does not constitute a trading recommendation to buy or sell any type of securities or derivatives.

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