Estee Lauder (EL) closed at $182.76 in the latest trading session, marking a -0.78% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.9%. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.79%.
Heading into today, shares of the beauty products company had lost 0.99% over the past month, lagging the Consumer Staples sector's gain of 1.93% and the S&P 500's gain of 1.52% in that time.
Investors will be hoping for strength from EL as it approaches its next earnings release, which is expected to be August 19, 2019. On that day, EL is projected to report earnings of $0.52 per share, which would represent a year-over-year decline of 14.75%. Our most recent consensus estimate is calling for quarterly revenue of $3.51 billion, up 6.62% from the year-ago period.
Any recent changes to analyst estimates for EL should also be noted by investors. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.42% higher within the past month. EL is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, EL is currently trading at a Forward P/E ratio of 31.8. For comparison, its industry has an average Forward P/E of 25.53, which means EL is trading at a premium to the group.
It is also worth noting that EL currently has a PEG ratio of 2.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Cosmetics was holding an average PEG ratio of 3.06 at yesterday's closing price.
The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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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