We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Estee Lauder (EL) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Estee Lauder (EL - Free Report) closed the most recent trading day at $240.41, moving -0.91% from the previous trading session. This change lagged the S&P 500's 0.74% loss on the day. At the same time, the Dow lost 0.9%, and the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the beauty products company had gained 10.84% over the past month. This has outpaced the Consumer Staples sector's gain of 5.86% and the S&P 500's gain of 3.74% 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%. 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 $16.53 billion. These results would represent year-over-year changes of -26.1% and -6.8%, respectively.
It is also important to note the recent changes to analyst estimates for Estee Lauder. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.46% lower. Estee Lauder is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Estee Lauder currently has a Forward P/E ratio of 45.32. This valuation marks a premium compared to its industry's average Forward P/E of 31.81.
We can also see that EL currently has a PEG ratio of 4.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Cosmetics stocks are, on average, holding a PEG ratio of 2 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 58, which puts it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Estee Lauder (EL) Dips More Than Broader Markets: What You Should Know
Estee Lauder (EL - Free Report) closed the most recent trading day at $240.41, moving -0.91% from the previous trading session. This change lagged the S&P 500's 0.74% loss on the day. At the same time, the Dow lost 0.9%, and the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the beauty products company had gained 10.84% over the past month. This has outpaced the Consumer Staples sector's gain of 5.86% and the S&P 500's gain of 3.74% 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%. 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 $16.53 billion. These results would represent year-over-year changes of -26.1% and -6.8%, respectively.
It is also important to note the recent changes to analyst estimates for Estee Lauder. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.46% lower. Estee Lauder is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Estee Lauder currently has a Forward P/E ratio of 45.32. This valuation marks a premium compared to its industry's average Forward P/E of 31.81.
We can also see that EL currently has a PEG ratio of 4.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Cosmetics stocks are, on average, holding a PEG ratio of 2 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 58, which puts it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.