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Estee Lauder (EL) Dips More Than Broader Markets: What You Should Know
Estee Lauder (EL - Free Report) closed the most recent trading day at $273.94, moving -1.16% from the previous trading session. This change lagged the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.44%.
Prior to today's trading, shares of the beauty products company had gained 11.63% over the past month. This has outpaced the Consumer Staples sector's loss of 1.82% and the S&P 500's gain of 4.57% in that time.
Estee Lauder will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2023. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $4.57 billion, down 17.56% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.37 per share and revenue of $16.7 billion. These totals would mark changes of -25.83% and -5.83%, respectively, from last year.
Any recent changes to analyst estimates for Estee Lauder should also be noted by investors. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.48% higher. Estee Lauder is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Estee Lauder currently has a Forward P/E ratio of 51.6. For comparison, its industry has an average Forward P/E of 32.96, which means Estee Lauder is trading at a premium to the group.
Meanwhile, EL's PEG ratio is currently 5.36. 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 1.94 as of yesterday's close.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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.