Estee Lauder (EL) Stock Moves -0.68%: What You Should Know
Estee Lauder (EL) closed the most recent trading day at $242.22, moving -0.68% from the previous trading session. This change was narrower than the S&P 500's 1.45% loss on the day. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 5.88%.
Heading into today, shares of the beauty products company had gained 9.5% over the past month, outpacing the Consumer Staples sector's gain of 1.66% and the S&P 500's loss of 1.68% in that time.
Wall Street will be looking for positivity from Estee Lauder as it approaches its next earnings report date. On that day, Estee Lauder is projected to report earnings of $1.29 per share, which would represent a year-over-year decline of 57.14%. Our most recent consensus estimate is calling for quarterly revenue of $4.55 billion, down 17.87% from the year-ago period.
EL's full-year Zacks Consensus Estimates are calling for earnings of $5.35 per share and revenue of $16.54 billion. These results would represent year-over-year changes of -26.1% and -6.76%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. Estee Lauder is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that Estee Lauder has a Forward P/E ratio of 45.63 right now. This represents a premium compared to its industry's average Forward P/E of 29.91.
We can also see that EL currently has a PEG ratio of 4.77. 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. Cosmetics stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% 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.
To follow EL in the coming trading sessions, be sure to utilize Zacks.com.
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The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
