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Estee Lauder (EL) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Estee Lauder (EL) closed at $192.55 in the latest trading session, marking a -1.17% move from the prior day. This change lagged the S&P 500's daily loss of 0.31%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the beauty products company had gained 11.05% in the past month. In that same time, the Consumer Staples sector gained 1.67%, while the S&P 500 gained 2.92%.

Investors will be hoping for strength from EL as it approaches its next earnings release. The company is expected to report EPS of $1.60, up 13.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.85 billion, up 9.39% from the year-ago period.

EL's full-year Zacks Consensus Estimates are calling for earnings of $5.99 per share and revenue of $16.02 billion. These results would represent year-over-year changes of +12.19% and +7.75%, respectively.

Investors might also notice recent changes to analyst estimates for EL. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.38% higher. EL currently has a Zacks Rank of #2 (Buy).

Digging into valuation, EL currently has a Forward P/E ratio of 32.52. Its industry sports an average Forward P/E of 26.97, so we one might conclude that EL is trading at a premium comparatively.

It is also worth noting that EL currently has a PEG ratio of 2.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EL's industry had an average PEG ratio of 2.85 as of yesterday's close.

The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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