Estee Lauder (EL) closed the most recent trading day at $239.50, moving -0.89% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.13%.
Heading into today, shares of the beauty products company had lost 8.9% over the past month, lagging the Consumer Staples sector's loss of 6.15% and the S&P 500's loss of 7.59% in that time.
Investors will be hoping for strength from Estee Lauder as it approaches its next earnings release. In that report, analysts expect Estee Lauder to post earnings of $1.33 per share. This would mark a year-over-year decline of 29.63%. Our most recent consensus estimate is calling for quarterly revenue of $4 billion, down 8.91% from the year-ago period.
EL's full-year Zacks Consensus Estimates are calling for earnings of $7.51 per share and revenue of $18.45 billion. These results would represent year-over-year changes of +3.73% and +4.02%, respectively.
Investors might also notice recent changes to analyst estimates for Estee Lauder. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. Estee Lauder is currently a Zacks Rank #3 (Hold).
Digging into valuation, Estee Lauder currently has a Forward P/E ratio of 32.19. This valuation marks a premium compared to its industry's average Forward P/E of 30.08.
Investors should also note that EL has a PEG ratio of 3.24 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Cosmetics was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow EL in the coming trading sessions, be sure to utilize Zacks.com.
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The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report
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