In the latest trading session, Estee Lauder (EL - Free Report) closed at $189.53, marking a +0.04% move from the previous day. This change outpaced the S&P 500's 0.53% loss on the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1%.
Heading into today, shares of the beauty products company had gained 3.81% over the past month, outpacing the Consumer Staples sector's loss of 0.44% and the S&P 500's gain of 2.68% in that time.
Investors will be hoping for strength from EL as it approaches its next earnings release, which is expected to be August 19, 2019. The company is expected to report EPS of $0.50, down 18.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.51 billion, up 6.43% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for EL. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% higher. EL is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, EL is holding a Forward P/E ratio of 32.73. Its industry sports an average Forward P/E of 27.36, so we one might conclude that EL is trading at a premium comparatively.
We can also see that EL currently has a PEG ratio of 2.52. 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. The Cosmetics industry currently had an average PEG ratio of 2.96 as of yesterday's close.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow EL in the coming trading sessions, be sure to utilize Zacks.com.