Estee Lauder (EL) closed at $240.94 in the latest trading session, marking a +0.14% move from the prior day. This move outpaced the S&P 500’s daily loss of 1.11%. At the same time, the Dow lost 0.85%, and the tech-heavy Nasdaq gained 0.15%.
Prior to today’s trading, shares of the beauty products company had gained 5.45% over the past month. This has outpaced the Consumer Staples sector’s gain of 3.25% and the S&P 500’s loss of 2.19% in that time.
Estee Lauder will be looking to display strength as it nears its next earnings release. In that report, analysts expect Estee Lauder to post earnings of $1.29 per share. This would mark a year-over-year decline of 57.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
It is also important to note the recent changes to analyst estimates for Estee Lauder. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. Estee Lauder is currently a Zacks Rank #4 (Sell).
Digging into valuation, Estee Lauder currently has a Forward P/E ratio of 44.94. This represents a premium compared to its industry’s average Forward P/E of 29.42.
Also, we should mention that EL has a PEG ratio of 4.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Cosmetics industry currently had an average PEG ratio of 2.06 as of yesterday’s close.
The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 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.
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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