Estee Lauder (EL) closed at $180.79 in the latest trading session, marking a +1.74% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 1.48%, and the Nasdaq, a tech-heavy index, added 1.95%.
Coming into today, shares of the beauty products company had lost 5.11% in the past month. In that same time, the Consumer Staples sector lost 0.62%, while the S&P 500 lost 4.19%.
EL will be looking to display strength as it nears its next earnings release, which is expected to be August 19, 2019. The company is expected to report EPS of $0.52, down 14.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.51 billion, up 6.62% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for EL. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.58% higher. EL is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that EL has a Forward P/E ratio of 30.63 right now. For comparison, its industry has an average Forward P/E of 25.02, which means EL is trading at a premium to the group.
We can also see that EL currently has a PEG ratio of 2.36. 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. The Cosmetics industry currently had an average PEG ratio of 2.94 as of yesterday's close.
The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 33, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
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