We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 Stock Rises 21.9% in 3 Months: What Should Investors Do?
Read MoreHide Full Article
Key Takeaways
EL rose 21.9% in three months and trades above its 50 and 200-day averages.
EL returned to organic growth in Q1, with sales up 3% and adjusted operating margin expanding 300 bps.
EL gained prestige beauty share in China, the U.S. and Europe on brand strength.
The Estee Lauder Companies Inc. (EL - Free Report) , a leading player in the prestige beauty space, has delivered a strong performance in recent months, with its shares surging 21.9% over the past three months. This rally comfortably outpaces the broader market, as the Zacks Cosmetics industry gained 5.7%, the Zacks Consumer Staples sector edged up just 0.9% and the S&P 500 advanced 6.7% over the same period.
Estee Lauder has also sharply outperformed its key peers. Helen of Troy Limited (HELE - Free Report) declined 10%, Coty Inc. (COTY - Free Report) tumbled 26% and e.l.f. Beauty, Inc. (ELF - Free Report) plunged 34% in the past three months.
EL Stock Past 3 Months Performance
Image Source: Zacks Investment Research
Shares of Estee Lauder reached a 52-week high of $119.43 during yesterday’s session before settling at $115.37. The stock is trading above both its 50 and 200-day moving averages, indicating a positive technical setup.
This clear outperformance has put Estee Lauder firmly in the spotlight, reinforcing investor confidence in the company’s improving momentum. The recent surge suggests a potentially sustainable turnaround supported by strengthening fundamentals. Let’s take a closer look at the key drivers behind the stock’s rally and what they could mean for investors going forward.
Estee Lauder’s Winning Strategies
Estee Lauder has started fiscal 2026 on a solid footing, returning to organic sales growth and sharply improving profitability. Organic net sales increased 3% in the first quarter of fiscal 2026, while adjusted operating margin expanded 300 basis points to 7.3%. These results reflect improving execution of the Beauty Reimagined strategy and signal a meaningful operational turnaround.
The company’s Profit Recovery and Growth Plan continues to deliver measurable benefits. Adjusted gross margin expanded 60 basis points to 73.3%, driven by procurement efficiencies, lower promotional activity and improved inventory management. These gains more than offset inflationary and foreign exchange headwinds, enabling Estee Lauder to restore operating leverage while funding targeted growth investments.
Estee Lauder is also gaining prestige beauty share across key markets, including Mainland China, the United States and parts of Western Europe. Strong performances from brands such as La Mer, Le Labo, TOM FORD and Estée Lauder drove growth across categories, with contributions from both online and brick-and-mortar channels, underscoring a broad-based recovery in demand.
Product innovation remains a key growth driver, with new launches across skin care, makeup and fragrance strengthening brand relevance. At the same time, expanded distribution through Amazon Premium Beauty, TikTok Shop and specialty retail partnerships is enhancing consumer reach. These initiatives position Estee Lauder to capitalize on shifting buying patterns and sustain momentum.
How Are the Consensus Estimates Faring for EL?
Reflecting the positive sentiment around Estee Lauder, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past 30 days, the EPS estimate for fiscal 2026 and 2027 has inched up 2 cents each to $2.16 and $2.93, respectively. These estimates indicate expected year-over-year growth rates of 43.1% and 35.9%, respectively.
Image Source: Zacks Investment Research
Estee Lauder Stock’s Valuation
From a valuation perspective, Estee Lauder looks stretched. Estee Lauder trades at a forward price-to-earnings ratio of 44.76X, up from the industry average of 29.87X. While the P/E ratio is elevated, this reflects investors’ expectations for improved operating performance and earnings growth. By comparison, peers such as Coty, Helen of Troy and e.l.f. Beauty trade at lower multiples of 7.02, 5.7 and 38.69, respectively.
EL P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Here’s Why Estee Lauder Can Be an Attractive Play
Estee Lauder’s recent rally is supported by improving fundamentals, disciplined execution and a renewed focus on profitable growth. The company’s operational turnaround, margin recovery under the Profit Recovery and Growth Plan, and strength across the prestige brand portfolio support its longer-term growth prospects.
While trading at a premium to peers, Estee Lauder offers an appealing blend of brand leadership and earnings recovery potential. For investors seeking exposure to the prestige beauty space, this Zacks Rank #1 (Strong Buy) stock stands out as a compelling growth-oriented opportunity.
Image: Bigstock
Estee Lauder Stock Rises 21.9% in 3 Months: What Should Investors Do?
Key Takeaways
The Estee Lauder Companies Inc. (EL - Free Report) , a leading player in the prestige beauty space, has delivered a strong performance in recent months, with its shares surging 21.9% over the past three months. This rally comfortably outpaces the broader market, as the Zacks Cosmetics industry gained 5.7%, the Zacks Consumer Staples sector edged up just 0.9% and the S&P 500 advanced 6.7% over the same period.
Estee Lauder has also sharply outperformed its key peers. Helen of Troy Limited (HELE - Free Report) declined 10%, Coty Inc. (COTY - Free Report) tumbled 26% and e.l.f. Beauty, Inc. (ELF - Free Report) plunged 34% in the past three months.
EL Stock Past 3 Months Performance
Image Source: Zacks Investment Research
Shares of Estee Lauder reached a 52-week high of $119.43 during yesterday’s session before settling at $115.37. The stock is trading above both its 50 and 200-day moving averages, indicating a positive technical setup.
This clear outperformance has put Estee Lauder firmly in the spotlight, reinforcing investor confidence in the company’s improving momentum. The recent surge suggests a potentially sustainable turnaround supported by strengthening fundamentals. Let’s take a closer look at the key drivers behind the stock’s rally and what they could mean for investors going forward.
Estee Lauder’s Winning Strategies
Estee Lauder has started fiscal 2026 on a solid footing, returning to organic sales growth and sharply improving profitability. Organic net sales increased 3% in the first quarter of fiscal 2026, while adjusted operating margin expanded 300 basis points to 7.3%. These results reflect improving execution of the Beauty Reimagined strategy and signal a meaningful operational turnaround.
The company’s Profit Recovery and Growth Plan continues to deliver measurable benefits. Adjusted gross margin expanded 60 basis points to 73.3%, driven by procurement efficiencies, lower promotional activity and improved inventory management. These gains more than offset inflationary and foreign exchange headwinds, enabling Estee Lauder to restore operating leverage while funding targeted growth investments.
Estee Lauder is also gaining prestige beauty share across key markets, including Mainland China, the United States and parts of Western Europe. Strong performances from brands such as La Mer, Le Labo, TOM FORD and Estée Lauder drove growth across categories, with contributions from both online and brick-and-mortar channels, underscoring a broad-based recovery in demand.
Product innovation remains a key growth driver, with new launches across skin care, makeup and fragrance strengthening brand relevance. At the same time, expanded distribution through Amazon Premium Beauty, TikTok Shop and specialty retail partnerships is enhancing consumer reach. These initiatives position Estee Lauder to capitalize on shifting buying patterns and sustain momentum.
How Are the Consensus Estimates Faring for EL?
Reflecting the positive sentiment around Estee Lauder, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past 30 days, the EPS estimate for fiscal 2026 and 2027 has inched up 2 cents each to $2.16 and $2.93, respectively. These estimates indicate expected year-over-year growth rates of 43.1% and 35.9%, respectively.
Image Source: Zacks Investment Research
Estee Lauder Stock’s Valuation
From a valuation perspective, Estee Lauder looks stretched. Estee Lauder trades at a forward price-to-earnings ratio of 44.76X, up from the industry average of 29.87X. While the P/E ratio is elevated, this reflects investors’ expectations for improved operating performance and earnings growth. By comparison, peers such as Coty, Helen of Troy and e.l.f. Beauty trade at lower multiples of 7.02, 5.7 and 38.69, respectively.
EL P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Here’s Why Estee Lauder Can Be an Attractive Play
Estee Lauder’s recent rally is supported by improving fundamentals, disciplined execution and a renewed focus on profitable growth. The company’s operational turnaround, margin recovery under the Profit Recovery and Growth Plan, and strength across the prestige brand portfolio support its longer-term growth prospects.
While trading at a premium to peers, Estee Lauder offers an appealing blend of brand leadership and earnings recovery potential. For investors seeking exposure to the prestige beauty space, this Zacks Rank #1 (Strong Buy) stock stands out as a compelling growth-oriented opportunity.
You can see the complete list of today’s Zacks #1 Rank stocks here.