Please ensure Javascript is enabled for purposes of website accessibility

Why Avon Products Stock Gained 13.5% in January

By Demitri Kalogeropoulos - Feb 7, 2018 at 10:40AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors tiptoed back into the struggling cosmetic specialist's stock ahead of its holiday season quarterly report.

What happened

Cosmetics specialist Avon Products (AVP) beat the market last month, rising nearly 14% compared to a 6% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.

AVP Chart

AVP data by YCharts.

The increase erased just a small portion of shareholders' recent losses, though, and the stock remains down by more than 70% since early 2015.

So what

January's stock price uptick followed a brutal 2017 during which Avon's shares fell by 57%. Thus, investors were likely just tiptoeing back from the pessimistic reading on the business that that plunge implies.

A woman applies makeup.

Image source: Getty Images.

The company's most recent operating update wasn't encouraging, with sales and profits forecast to come in short of management's prior outlook over the key holiday selling period.

Now what

Avon just appointed a new CEO, Jan Zijderveld, who most recently served as an executive at consumer products giant Unilever. He is taking over for Sheri McCoy after her turnaround plan failed to spark consistent growth over the past two years. Avon shareholders will likely hear details about Zijderveld's strategic priorities when the company announces its fourth-quarter earnings results on Thursday, Feb. 15.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Avon Products, Inc. Stock Quote
Avon Products, Inc.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.