Why Helen of Troy (HELE) Outpaced the Stock Market Today
In the latest trading session, Helen of Troy (HELE) closed at $104.72, marking a +1.22% move from the previous day. This change outpaced the S&P 500's 0.06% gain on the day. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.11%.
The personal and household products company's shares have seen an increase of 4.77% over the last month, not keeping up with the Consumer Staples sector's gain of 6.28% and the S&P 500's gain of 8.22%.
The investment community will be closely monitoring the performance of Helen of Troy in its forthcoming earnings report. In that report, analysts expect Helen of Troy to post earnings of $2.76 per share. This would mark year-over-year growth of 0.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $542.66 million, down 2.86% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.77 per share and revenue of $2 billion, which would represent changes of -7.2% and -3.7%, respectively, from the prior year.
Any recent changes to analyst estimates for Helen of Troy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Helen of Troy presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Helen of Troy is currently being traded at a Forward P/E ratio of 11.8. This indicates a discount in contrast to its industry's Forward P/E of 30.94.
It is also worth noting that HELE currently has a PEG ratio of 1.48. 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 industry currently had an average PEG ratio of 2.53 as of yesterday's close.
The Cosmetics industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 190, placing it within the bottom 25% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Helen of Troy Limited (HELE) : Free Stock Analysis Report
