Will The Estée Lauder Companies (EL) be Able to Increase Revenue Growth in the Upcoming Years?
ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. For both the quarter and the whole year, the Strategy exceeded the benchmark, the Russell 1000 Growth Index, supported by robust Magnificent Seven stock selection, opportunistic management of earnings reset names, and diverse non-tech contributions. The Strategy posted gains across 10 out of the eleven sectors in which it was invested, on an absolute basis. Overall stock selection contributed to performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.
In its Q4 2023 investor letter, ClearBridge Large Cap Growth Strategy featured stocks such as The Estée Lauder Companies Inc. (NYSE:EL). Headquartered in New York, New York, The Estée Lauder Companies Inc. (NYSE:EL) is a skincare, makeup, fragrance, and hair care products manufacturer. On January 4, 2024, The Estée Lauder Companies Inc. (NYSE:EL) stock closed at $138.72 per share. One-month return of The Estée Lauder Companies Inc. (NYSE:EL) was 3.73%, and its shares lost 47.42% of their value over the last 52 weeks. The Estée Lauder Companies Inc. (NYSE:EL) has a market capitalization of $49.619 billion.
In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding The Estée Lauder Companies Inc. (NYSE:EL):
"Other meaningful moves during the quarter included additions to cyclical growers we consider early cycle consumer plays: Target, a position initiated in the third quarter, and The Estée Lauder Companies Inc. (NYSE:EL). As earnings start to recover, these stocks and semiconductors tend to be among the first to move. We may be a little early and could see some choppiness in stock prices as job growth and consumer spending cool due to the lagged effects of Fed tightening, but we believe we’re closer to the bottom in terms of economic activity and that both companies, as well as Union Pacific, are well-positioned to benefit as consumer sentiment improves and the economy begins to recover. Estee Lauder (as well as Nike) has underperformed as Chinese consumer spending has not rebounded as expected due to a sluggish economic reopening. However, we believe Estee Lauder has a stable of relevant brands and should be able to return to mid- to high-single-digit revenue growth over the next two to three years, with commensurate profit recovery. We recently met with management and believe our thesis remains intact, giving us confidence to add to the position on weakness."
A photograph of a customer testing out different products in the skincare aisle at a store.
The Estée Lauder Companies Inc. (NYSE:EL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held The Estée Lauder Companies Inc. (NYSE:EL) at the end of third quarter which was 44 in the previous quarter.
We discussed The Estée Lauder Companies Inc. (NYSE:EL) in another article and shared the list of best stocks to buy in 2024 according to billionaire D.E. Shaw. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
