Estee Lauder (EL) Gains But Lags Market: What You Should Know
Estee Lauder (EL) closed the most recent trading day at $238.50, moving +0.71% from the previous trading session. This change lagged the S&P 500's 1.3% gain on the day. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 7.48%.
Prior to today's trading, shares of the beauty products company had lost 6.35% over the past month. This has lagged the Consumer Staples sector's loss of 1.2% and the S&P 500's loss of 2.95% in that time.
Investors will be hoping for strength from Estee Lauder as it approaches its next earnings release. In that report, analysts expect Estee Lauder to post earnings of $0.49 per share. This would mark a year-over-year decline of 74.21%. Meanwhile, our latest consensus estimate is calling for revenue of $3.71 billion, down 12.56% from the prior-year quarter.
EL's full-year Zacks Consensus Estimates are calling for earnings of $4.97 per share and revenue of $16.93 billion. These results would represent year-over-year changes of -31.35% and -4.55%, respectively.
Investors should also note any recent changes to analyst estimates for Estee Lauder. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Estee Lauder is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Estee Lauder is currently trading at a Forward P/E ratio of 47.69. Its industry sports an average Forward P/E of 33.63, so we one might conclude that Estee Lauder is trading at a premium comparatively.
Also, we should mention that EL has a PEG ratio of 5.19. 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. The Cosmetics was holding an average PEG ratio of 2.11 at yesterday's closing price.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
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