Stock of the Day

November 11, 2024

Estée Lauder Companies (EL)

$71.71
+$0.37 (+0.5%)
Market Cap: $25.61B

About Estée Lauder Companies

The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, and powders, as well as compacts, brushes, and other makeup tools. The company also provides fragrance products in various forms comprising eau de parfum sprays and colognes, as well as lotions, powders, creams, candles, and soaps; and hair care products, including shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. It offers its products under the Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, TOM FORD, Too Faced, Dr.Jart+, and The Ordinary brands. The company sells its products through department stores, specialty-multi retailers, upscale perfumeries and pharmacies, and salons and spas; freestanding stores; its own and authorized retailer websites; third-party online malls; stores in airports; and duty-free locations. The Estée Lauder Companies Inc. was founded in 1946 and is headquartered in New York, New York.

Estée Lauder Companies Bull Case

Here are some ways that investors could benefit from investing in The Estée Lauder Companies Inc.:

  • Insider purchases indicate confidence in the company, with insiders acquiring a total of 119,200 shares valued at $7,801,318 in the last quarter, suggesting they believe the stock is undervalued.
  • The stock has a consensus rating of "Hold" from twenty research analysts, with four analysts giving it a "Buy" rating, indicating a generally positive outlook among experts.
  • Recent upgrades from analysts, such as DA Davidson reaffirming a "Buy" rating with a target price of $81.00, suggest potential for price appreciation.
  • The current stock price is around $66.35, which is significantly lower than the average target price of $86.00, indicating potential upside for investors.
  • The company has a strong market presence in skin care, makeup, fragrance, and hair care products, which are consistently in demand, providing a stable revenue base.

Estée Lauder Companies Bear Case

Investors should be bearish about investing in The Estée Lauder Companies Inc. for these reasons:

  • Recent downgrades from analysts, including TD Cowen and B. Riley, have lowered their price targets significantly, indicating concerns about the company's future performance.
  • Insider ownership is only 12.78%, which may suggest a lack of alignment between management and shareholder interests compared to companies with higher insider ownership.
  • The stock has faced price target reductions from multiple analysts, with some targets dropping as low as $64.00, reflecting a cautious sentiment in the market.
  • Market volatility and economic uncertainties could impact consumer spending on luxury products, which may affect The Estée Lauder Companies Inc.'s sales and profitability.
  • With a high number of analysts rating the stock as a "Hold," there may be limited immediate growth potential, leading to stagnation in stock performance.

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