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Estee Lauder (EL) Dips More Than Broader Markets: What You Should Know

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Estee Lauder (EL - Free Report) closed the most recent trading day at $205.48, moving -0.75% from the previous trading session. This move lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.19%.

Heading into today, shares of the beauty products company had gained 11.05% over the past month, outpacing the Consumer Staples sector's gain of 3.44% and the S&P 500's gain of 3.61% in that time.

Wall Street will be looking for positivity from EL as it approaches its next earnings report date. On that day, EL is projected to report earnings of $1.60 per share, which would represent year-over-year growth of 13.48%. Our most recent consensus estimate is calling for quarterly revenue of $3.85 billion, up 9.39% from the year-ago period.

EL's full-year Zacks Consensus Estimates are calling for earnings of $5.98 per share and revenue of $16.02 billion. These results would represent year-over-year changes of +11.99% and +7.75%, respectively.

Investors should also note any recent changes to analyst estimates for EL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.43% higher. EL is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note EL's current valuation metrics, including its Forward P/E ratio of 34.65. Its industry sports an average Forward P/E of 25.82, so we one might conclude that EL is trading at a premium comparatively.

Investors should also note that EL has a PEG ratio of 2.66 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EL's industry had an average PEG ratio of 2.8 as of yesterday's close.

The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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