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Investor Insights

This summary was created by AI, based on 11 opinions in the last 12 months.

Estee Lauder (EL-N) seems to be facing challenges due to declining revenue, increased competition, and issues with marketing channels. The stock has experienced a significant decline in share price and is currently under pressure. However, some experts see potential for a rebound in the future, particularly with the expected recovery in sales by 2024. The company's strong portfolio of well-established brands and potential growth in China's market are seen as positive factors despite the current difficulties.

Consensus
Mixed
Valuation
Overvalued
Similar
L'Oreal, LRLCY
HOLD
Estee Lauder
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EL is a high-quality consumer staple name, which has always traded at a premium valuation. However, EL’s revenue has declined for two years in a row now, which has investors concerned. We think EL is in a bit of turnaround situation now, which we try to stay away from (most turnarounds rarely turn or take longer than expected), we would like to see revenue growth recover before getting interested in EL. Growth out of China is not helping but competition does look like it is increasing across the board as well and we wonder a bit if EL is having trouble adjusting to newer marketing channels that are being used. 
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Consumer Products
DON'T BUY
Estee Lauder

It used to be top of the world, offering the best luxury cosmetics like skin care. They made a big bet on Chinese travellers returning to duty-free shops, but they lost the bet. Meanwhile, competitors came on hard. IS down 44% this year, though popped 5% today.

Consumer Products
BUY
Estee Lauder

It's been a loser for him, but it does a lot of business in China. Shares moved up before and after today's Biden-Xi summit. It's one of the biggest market laggards, and now the market is looking for those.

Consumer Products
DON'T BUY
Estee Lauder

A disaster. Used to be great. The CEO is not doing a good job.

Consumer Products
HOLD
Estee Lauder
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EL’s share price is under tremendous pressure recently due to the weak guidance. Still, at 52X earnings the stock is still on the expensive side, even with a 28% YTD decline.  Based on consensus estimates, sales are expected to decline by around -10% this year and start to recover back to 2022’s level in 2024. We think EL still possesses a strong portfolio of worldwide recognized brands for skincare, makeup, fragrance, etc. and these brands have been around for decades and demonstrated consumer loyalty and significant pricing power over the years. Most consumer discretionary names experienced a short-term headwind due to the concern of economic recession. In the last quarter EPS missed estimates. For 2023, EPS is expected to decline by close to 50%. But, nearly 50% growth is expected in a 2024 recovery. Thus, this is a tough call. Momentum is negative, and there are still risks. Valuation is high, but we think that is because investors believe in the rebound possibility. We have recession risk, but the balance sheet is OK (some debt but not an onerous amount). Sentinment is very negative, so any positive news at all should be good for the stock. We would thus be willing to hold to see how the next two quarters fare. 
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Consumer Products
HOLD
Estee Lauder

Upgraded today, but down 25% YTD. It has missed the last three quarters and most recently guided down due to supply chain issues and China reopening slowly and travel retail (mostly from Asia) being down 43%. But ex-travel retail rose 10% last quarter, so eventually these will work. Eventually, China will right itself and sentiment has fallen enough.

Consumer Products
DON'T BUY
Estee Lauder

Is linked to China whose reopening has been much slower than expected, so EL isn't doing well lately. 

Consumer Products
BUY ON WEAKNESS
Estee Lauder
Allan Tong’s Discover Picks

It’s a safe bet to assume that the return of the Chinese traveller will boost EL’s bottom line. Rather, it’s a question of how much and how fast? The company itself has beaten its last four quarters. The market is giving shares the benefit of the doubt as EL trades just under 58x PE, above its five-year average of 55.31x and higher than in 2022, but a third during the December 2020 peak. Read China reopens for our full analysis.

Consumer Products
BUY
Estee Lauder

Expects a good quarter next week.

Consumer Products
BUY
Estee Lauder

Will benefit from China's reopening and has long performed well there. 

Consumer Products
BUY
Estee Lauder
SBUX and Estee Lauder

Today marks the first day that American business executives can fly to China after three years. Those American companies which already have a strong presence in China can get a major boost from this reopening. The company was thriving before the reopening, so imagine what happens now.

Consumer Products
BUY
Estee Lauder
Down 33% so far this year, due China's lockdowns (a major market). Covid could explode there, then subside, because that's what Covid does. Has rebounded 37% from last month's lows. This looks great for 2023.
Consumer Products
COMMENT
Estee Lauder
It reports next week. Eager to hear results. She doesn't own a lot of consumer discretionary. It's a prestige brand and could grow its market share and margins over time, but even though the PE is pricey. Problem is they rely on China where Covid restrictions are an overhang.
Consumer Products
PARTIAL SELL
Estee Lauder
She trimmed this due to issues in China. Trades at an expensive 36x PE. She just sold some shares.
Consumer Products
BUY
Estee Lauder
The return of travel and possible loosening of restrictions in China are tailwinds.
Consumer Products
Showing 1 to 15 of 48 entries

Estee Lauder(EL-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 11

Stockchase rating for Estee Lauder is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Estee Lauder(EL-N) Frequently Asked Questions

What is Estee Lauder stock symbol?

Estee Lauder is a American stock, trading under the symbol EL-N on the New York Stock Exchange (EL). It is usually referred to as NYSE:EL or EL-N

Is Estee Lauder a buy or a sell?

In the last year, 11 stock analysts published opinions about EL-N. 5 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Estee Lauder.

Is Estee Lauder a good investment or a top pick?

Estee Lauder was recommended as a Top Pick by on . Read the latest stock experts ratings for Estee Lauder.

Why is Estee Lauder stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Estee Lauder worth watching?

11 stock analysts on Stockchase covered Estee Lauder In the last year. It is a trending stock that is worth watching.

What is Estee Lauder stock price?

On 2024-02-23, Estee Lauder (EL-N) stock closed at a price of $149.99.