In the latest trading session, Estee Lauder (EL) closed at $190.83, marking a +0.31% move from the previous day. This move outpaced the S&P 500's daily loss of 0.62%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.74%.
Coming into today, shares of the beauty products company had gained 3.98% in the past month. In that same time, the Consumer Staples sector gained 2.49%, while the S&P 500 gained 2.8%.
Wall Street will be looking for positivity from EL as it approaches its next earnings report date. In that report, analysts expect EL to post earnings of $0.50 per share. This would mark a year-over-year decline of 18.03%. Our most recent consensus estimate is calling for quarterly revenue of $3.51 billion, up 6.58% from the year-ago period.
Any recent changes to analyst estimates for EL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. EL is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that EL has a Forward P/E ratio of 32.96 right now. For comparison, its industry has an average Forward P/E of 27.51, which means EL is trading at a premium to the group.
Meanwhile, EL's PEG ratio is currently 2.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EL's industry had an average PEG ratio of 2.97 as of yesterday's close.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.
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The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
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