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We expect cosmetics maker Estee Lauder Inc (EL - Analyst Report) to beat expectations when it reports second-quarter fiscal 2014 results on Feb 5, 2014.

Positive Zacks ESP: Expected Surprise Prediction or Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +0.94%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.

Zacks Rank #2 (Buy): Note that stocks with Zacks Ranks #1, 2 and 3 have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.

The combination of Estee Lauder’s Zacks Rank #2 and +0.94% ESP makes us very confident in looking for a positive earnings beat on Feb 5.

What is Driving the Better-than-Expected Earnings?

Estee Lauder has posted better-than-expected results in the last four quarters. Organic sales growth, product innovation and cost savings measures have remained the company’s strong points. We believe these factors will boost earnings in the upcoming quarter as well.

We are encouraged by Estee Lauder’s booming travel retail business. Rising air traffic is expected to boost sales in the Travel Retail segment in the upcoming quarter.

Other Stocks to Consider

Here are some other companies that investors may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Lorillard Inc. (LO - Analyst Report), with Earnings ESP of +1.18% and a Zacks Rank #2.

Foot Locker Inc. (FL - Snapshot Report), with Earnings ESP of +1.33% and a Zacks Rank #2.

Micheal Kors Inc. (KORS - Analyst Report), with Earnings ESP of +2.33% and a Zacks Rank #3 (Hold).

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