Estee Lauder (EL - Free Report) closed the most recent trading day at $196.33, moving +0.51% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.53%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 1.13%.
Heading into today, shares of the beauty products company had lost 4.06% over the past month, lagging the Consumer Staples sector's gain of 1.09% and the S&P 500's gain of 3.59% in that time.
Wall Street will be looking for positivity from EL as it approaches its next earnings report date. In that report, analysts expect EL to post earnings of $1.60 per share. This would mark year-over-year growth of 13.48%. Meanwhile, our latest consensus estimate is calling for revenue of $3.85 billion, up 9.39% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.99 per share and revenue of $16.01 billion. These totals would mark changes of +12.17% and +7.75%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for EL. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.06% higher. EL currently has a Zacks Rank of #2 (Buy).
Digging into valuation, EL currently has a Forward P/E ratio of 32.59. This represents a premium compared to its industry's average Forward P/E of 29.21.
It is also worth noting that EL currently has a PEG ratio of 2.58. 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. Cosmetics stocks are, on average, holding a PEG ratio of 2.88 based on yesterday's closing prices.
The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.