This summary was created by AI, based on 10 opinions in the last 12 months.
Estee Lauder (EL-N) is a company that has traditionally been associated with high-quality consumer staple products. However, recent declines in revenue and challenges in adapting to new marketing channels have caused concern among investors. There are contrasting opinions on the stock, with some experts expressing pessimism about its performance and others highlighting the potential for growth, particularly in relation to China's reopening. The stock's valuation remains on the expensive side, and there are concerns about its future earnings. Overall, the company is facing a tough period with negative sentiment, but there is potential for a rebound in the long term.
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.
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.
A disaster. Used to be great. The CEO is not doing a good job.
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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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.
Is linked to China whose reopening has been much slower than expected, so EL isn't doing well lately.
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.
Will benefit from China's reopening and has long performed well there.
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.
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
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.
Estee Lauder was recommended as a Top Pick by on . Read the latest stock experts ratings for Estee Lauder.
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.
11 stock analysts on Stockchase covered Estee Lauder In the last year. It is a trending stock that is worth watching.
On 2024-03-28, Estee Lauder (EL-N) stock closed at a price of $154.15.
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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