Estee Lauder Companies Inc. Stock Analysis (EL) as of May 16, 2025:
Current Price: At 16:00:00 EDT, EL is trading at $65.18, up 2.40% from its opening price of $64.77.
Market Cap: $23.45 Billion USD
Analyst Ratings:
The consensus rating among analysts is "Hold."
Based on ratings from around 27 brokerage firms, the average brokerage recommendation (ABR) is 2.74 (on a scale of 1 to 5, where 1 is Strong Buy and 5 is Strong Sell). This is consistent with the ABR from a week ago (2.74) and slightly improved from a month ago (2.75).
Currently, there are 3 Strong Buy and 1 Buy recommendations. The majority of recommendations are Hold (23). There are 0 Sell or Strong Sell recommendations.
Price Targets:
The average price target from 23 analysts is $67.26.
Price targets range from a low of $56.00 to a high of $100.00.
The average price target suggests a potential upside of approximately 5.64% from the last closing price of $63.67.
One analysis suggests a 17.44% upside potential, while another mentions a more modest 6.8% based on a 1-year price target of $68.00.
Technical Analysis:
Technical indicators present a mixed outlook.
Some sources indicate a "Hold" based on technical indicators, with a Neutral RSI (14) and a Sell MACD.
However, the 5-day and 20-day moving averages are suggested as "Buy," while the 50-day and 200-day moving averages are seen as "Sell."
Investtech indicates a medium-term falling trend channel but notes the price is near a support level of $63.00, which could lead to a positive reaction. They also point to high positive momentum and an overbought RSI in the short term, which might suggest a potential pullback.
Fundamental Analysis:
Revenue: In the second quarter of fiscal year 2025, Estee Lauder's revenue was $4.00 billion, up 19.13% from the previous quarter. However, year-over-year comparisons might be relevant for a broader perspective.
Earnings Per Share (EPS): The latest EPS was -$1.64, significantly below analyst estimates. The next quarter's EPS is estimated at $0.07.
Profitability: While the gross profit margin is impressive (76.10% in Q2 2025), overhead costs led to an overall loss in that quarter. The operating profit margin, pretax profit margin, and net profit margin are considered low or failing in some analyses.
Valuation: Some price-to ratios, such as P/B, P/S, and Price to Free Cash Flow, are considered high. However, the PEG ratio is low. An intrinsic value calculation suggests the stock might be slightly undervalued.
Future Growth: Analysts expect moderate revenue growth in the coming years but stronger growth in EPS.
Key Considerations:
Analyst Sentiment: While the average rating is "Hold," there are still some "Buy" recommendations, and the average price target suggests some upside.
Technical Factors: The mixed technical signals make it difficult to draw a definitive conclusion based solely on technical analysis.
Fundamental Challenges: Recent earnings reports indicate some challenges with profitability despite strong gross margins. Future earnings growth will be crucial.
Market Conditions: The overall market and the performance of the cosmetics industry will influence Estee Lauder's stock price.
Should You Buy EL?
Given the current information, there isn't a clear "Buy" signal. The consensus "Hold" rating reflects the mixed signals from analysts. While there's potential upside based on price targets, the fundamental challenges and mixed technical outlook suggest caution.
Before making any investment decisions, you should:
Conduct thorough independent research.
Carefully consider your own investment goals, risk tolerance, and financial situation.
Review the company's financial statements and future prospects in detail.
Consider seeking advice from a qualified financial advisor.
Keep in mind that the stock market is inherently risky, and past performance is not indicative of future results.
Current Price: At 16:00:00 EDT, EL is trading at $65.18, up 2.40% from its opening price of $64.77.
Market Cap: $23.45 Billion USD
Analyst Ratings:
The consensus rating among analysts is "Hold."
Based on ratings from around 27 brokerage firms, the average brokerage recommendation (ABR) is 2.74 (on a scale of 1 to 5, where 1 is Strong Buy and 5 is Strong Sell). This is consistent with the ABR from a week ago (2.74) and slightly improved from a month ago (2.75).
Currently, there are 3 Strong Buy and 1 Buy recommendations. The majority of recommendations are Hold (23). There are 0 Sell or Strong Sell recommendations.
Price Targets:
The average price target from 23 analysts is $67.26.
Price targets range from a low of $56.00 to a high of $100.00.
The average price target suggests a potential upside of approximately 5.64% from the last closing price of $63.67.
One analysis suggests a 17.44% upside potential, while another mentions a more modest 6.8% based on a 1-year price target of $68.00.
Technical Analysis:
Technical indicators present a mixed outlook.
Some sources indicate a "Hold" based on technical indicators, with a Neutral RSI (14) and a Sell MACD.
However, the 5-day and 20-day moving averages are suggested as "Buy," while the 50-day and 200-day moving averages are seen as "Sell."
Investtech indicates a medium-term falling trend channel but notes the price is near a support level of $63.00, which could lead to a positive reaction. They also point to high positive momentum and an overbought RSI in the short term, which might suggest a potential pullback.
Fundamental Analysis:
Revenue: In the second quarter of fiscal year 2025, Estee Lauder's revenue was $4.00 billion, up 19.13% from the previous quarter. However, year-over-year comparisons might be relevant for a broader perspective.
Earnings Per Share (EPS): The latest EPS was -$1.64, significantly below analyst estimates. The next quarter's EPS is estimated at $0.07.
Profitability: While the gross profit margin is impressive (76.10% in Q2 2025), overhead costs led to an overall loss in that quarter. The operating profit margin, pretax profit margin, and net profit margin are considered low or failing in some analyses.
Valuation: Some price-to ratios, such as P/B, P/S, and Price to Free Cash Flow, are considered high. However, the PEG ratio is low. An intrinsic value calculation suggests the stock might be slightly undervalued.
Future Growth: Analysts expect moderate revenue growth in the coming years but stronger growth in EPS.
Key Considerations:
Analyst Sentiment: While the average rating is "Hold," there are still some "Buy" recommendations, and the average price target suggests some upside.
Technical Factors: The mixed technical signals make it difficult to draw a definitive conclusion based solely on technical analysis.
Fundamental Challenges: Recent earnings reports indicate some challenges with profitability despite strong gross margins. Future earnings growth will be crucial.
Market Conditions: The overall market and the performance of the cosmetics industry will influence Estee Lauder's stock price.
Should You Buy EL?
Given the current information, there isn't a clear "Buy" signal. The consensus "Hold" rating reflects the mixed signals from analysts. While there's potential upside based on price targets, the fundamental challenges and mixed technical outlook suggest caution.
Before making any investment decisions, you should:
Conduct thorough independent research.
Carefully consider your own investment goals, risk tolerance, and financial situation.
Review the company's financial statements and future prospects in detail.
Consider seeking advice from a qualified financial advisor.
Keep in mind that the stock market is inherently risky, and past performance is not indicative of future results.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.