Shares of cigarette manufacturer
Estee Lauder Inc.
) hit a new 52-week high of $75.62 on May 2, 2014, recording a
healthy year-to-date return of 2.6%. Share prices soared on the
back of solid third-quarter fiscal 2014 results and positive
outlook for fiscal 2015.
Solid First-Quarter Performance
Though third-quarter earnings missed Zacks Consensus Estimate
by a penny, they exceeded the prior-year results by 20.0% on the
back of decent top line show across all the segments of the
Net sales went up 8% year over year on the back of higher
sales in most of the geographic regions and major product
Estee Lauder expects its business momentum to continue
throughout the year. Following better-than-expected third quarter
results; Estee Lauder raised its fiscal 2014 earnings per share
outlook to a range of $2.86 to $2.90 from $2.80 to $2.87 expected
Investors are also encouraged by the company's product launch
lineup for the upcoming year. The company expects global prestige
beauty industry, to grow about 3% to 4% in 2014. It plans to
launch a new shower gel and body lotion as well as limited
edition mascara and repair sets in fiscal 2015..
Other Stocks to Consider
Headquartered in New York, Estee Lauder engages in the
manufacture and sale of skin care, makeup, fragrance and hair
care products and currently carries a Zacks Rank #3 (Hold).
Better-ranked stock in the cosmetics and toiletries sector
Helen of Troy Ltd.
). Both the stocks have a Zacks Rank #2 (Buy). Another stock
in the retail sector worth considering is
American Apparel, Inc.
) carrying the same Zacks Rank as Helen of Troy.
AMER APPAREL (APP): Free Stock Analysis
COTY INC-A (COTY): Free Stock Analysis Report
ESTEE LAUDER (EL): Free Stock Analysis Report
HELEN OF TROY (HELE): Free Stock Analysis
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