Stock of the Day

Estée Lauder Companies (EL)

$67.63

+$0.18 (+0.3%)

Market Cap: $24.34B

About Estée Lauder Companies

The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, and powders, as well as compacts, brushes, and other makeup tools.

The company also provides fragrance products in various forms comprising eau de parfum sprays and colognes, as well as lotions, powders, creams, candles, and soaps; and hair care products, including shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. It offers its products under the Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, TOM FORD, Too Faced, Dr.Jart+, and The Ordinary brands. The company sells its products through department stores, specialty-multi retailers, upscale perfumeries and pharmacies, and salons and spas; freestanding stores; its own and authorized retailer websites; third-party online malls; stores in airports; and duty-free locations. The Estée Lauder Companies Inc. was founded in 1946 and is headquartered in New York, New York.

Estée Lauder Companies Bull Case

Here are some ways that investors could benefit from investing in The Estée Lauder Companies Inc.:

• The current stock price is around $66.62, which may present a buying opportunity for investors looking for value in the beauty sector.
• The company reported earnings per share of $0.65, significantly exceeding analysts' expectations, indicating strong financial performance.
• Despite a recent decline in revenue, the company maintains a positive return on equity of 16.82%, suggesting effective management and profitability.
• The Estée Lauder Companies Inc. has a diverse product range, including skin care, makeup, fragrance, and hair care, which can help mitigate risks associated with market fluctuations.
• The company has declared a quarterly dividend of $0.35, providing a yield of approximately 2.10%, which can be attractive for income-focused investors.

Estée Lauder Companies Bear Case

Investors should be bearish about investing in The Estée Lauder Companies Inc. for these reasons:

• The stock has experienced a significant decline from its 52-week high of $125.90, raising concerns about its long-term growth potential.
• Recent revenue reports show a year-over-year decline of 9.9%, which may indicate challenges in maintaining sales momentum.
• The company has a negative net margin of 4.61%, suggesting that it is currently operating at a loss, which could be a red flag for potential investors.
• Analysts have downgraded the stock rating from "hold" to "sell," reflecting a lack of confidence in the company's near-term performance.
• The debt-to-equity ratio stands at 1.75, indicating that the company is heavily leveraged, which can increase financial risk, especially in volatile markets.

Recent News

• The Estée Lauder Companies Inc. (EL) Company Conference Presentation Transcript (seekingalpha.com)
• 3 Reasons to Sell EL and 1 Stock to Buy Instead (msn.com)
• Estee Lauder ratings downgraded by Moody’s due to recovery delays (investing.com)