Leave The Frothy Market And Buy The Estee Lauder Companies Inc. (EL), Occidental Petroleum Corporation (OXY)

The Estee Lauder Companies Inc. (NYSE:EL)’s EPS was $1.41 as reported for the September quarter. In comparison, the same quarter a year ago had an EPS of $1.21. That means that its growth in general now stands at 17%. Therefore, a prediction of $1.22 given by the analysts brought a positive surprise of 16%. EL Sep 18 quarter revenue was $3.52 billion, compared to $3.27 billion recorded in same quarter last year, giving it a 8% growth rate. The company’s $0.25 billion revenue growth that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

The Estee Lauder Companies Inc. (EL) currently trades at $141.39, which is lower by -1.87% its previous price. It has a total of 359.9 million outstanding shares, with an ATR of around 4.24. The company’s stock volume rose to 3.32 million, better than 2.22 million that represents its 50-day average. A 5-day increase of about 0.85% in its price means EL is now 11.12% higher on year-to-date. The shares have a $158.80 52-week high price. Overall, it has seen a growth rate of 13.57 over the last 12 months. The current price per share is above the 52 week low of $121.93.

20 analysts out of 27 Wall Street brokerage firms rate EL stock as a Buy, while 0 see it as a Sell. The rest 7 describe it as a Hold. The stock traded higher to an intra-day high of $142.93. At one point in session, its potential discontinued and the price was down to lows at $138.68. Analysts have set EL’s consensus price at $154.92, effectively giving it a 9.57% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $171 (up 20.94% from current price levels). EL has a 25.7% ROE, higher than the 15.28% average for the industry. The average ROE for the sector is 72.81%.

Occidental Petroleum Corporation (NYSE:OXY) shares depreciated -3.09% over the last trading period, taking overall 5-day performance up to -4.51%. EL’s price now at $67.52 is weaker than the 50-day average of $73.37. Getting the trading period increased to 200 days, the stock price was seen at $76.62 on average. The general public currently hold control of a total of 753.61 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 761.9 million. The company’s management holds a total of 0.1%, while institutional investors hold about 84.7% of the remaining shares. EL share price finished last trade -5.67% below its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -11.88%, while closing the session with -8.32% distance from 50 day simple moving average.

Occidental Petroleum Corporation (OXY) shares were last observed trading -22.98% down since June 07, 2018 when the peak of $87.67 was hit. Last month’s price growth of -3.47% puts OXY performance for the year now at -8.34%. Consequently, the shares price is trending higher by 8.08%, a 52-week worst price since Mar. 08, 2018. However, it is losing value with -21.92% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $64.71 and $66.12. The immediate resistance area is now $68.7 Williams’s%R (14) for OXY moved to 78.97 while the stochastic%K points at 30.5.

OXY’s beta is 0.84; meaning investors could reap lower returns, although it also poses lower risks. The company allocated $5.09 per share from its yearly profit to its outstanding shares. Its last reported revenue is $6.18 billion, which was 99% versus $3.11 billion in the corresponding quarter last year. The EPS for Sep 18 quarter came in at $1.77 compared to $0.18 in the year-ago quarter and had represented 883% year-over-year earnings per share growth. OXY’s ROA is 9%, higher than the 1.61% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 10.56%.

Estimated quarterly earnings for Occidental Petroleum Corporation (NYSE:OXY) are around $1.44 per share in three months through December with $1.39 also the estimate for March quarter of the fiscal year. It means the growth is estimated at 251.22% and 51.09%, respectively. Analysts estimate full-year growth to be 487.64%, the target being $5.23 a share. The upcoming year will see an increase in growth by percentage to 8.8%, more likely to see it hit the $5.69 per share. The firm’s current profit margin over the past 12 months is 23.3%. OXY ranks higher in comparison to an average of 6.89% for industry peers; while the average for the sector is 12.73%.