When looking at valuations, The Estee Lauder Companies Inc. (EL) has a cheap P/E of 29.23x as compared to industry average of 59.35x. It trades for 23.26 times the next 12 months of expected earnings. It is trading at rather expensive levels at just over 10.43x price/book and 3.31x price/sales. Compared to others, The Estee Lauder Companies Inc. is in a different league with regards to profitability, having net margins of 8.5%. To put some perspective around this, the industry’s average net margin is 10.16%. EL’s ROE is 25.7%, which is considerably better than the industry’s ROE of 15.29%. It’s very liquid in the near term, with a current ratio of 1.8. The stock has a debt/capital of 0.8.
The Estee Lauder Companies Inc. (NYSE:EL) is now worth $46.17B thanks to -1.98% drop in recent trade and currently has a price tag of $125.3. The shares traded as low as $121.47 and had $125.94 an intraday high earlier Thursday. Trading activity significantly improved as the volume at ready counter increased to 4,395,662 shares versus 2,125,505 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,724,400 shares. The stock is now 3.01% above against its bear-market low of $121.64 on January 10, 2019. It has retreated -26.74% since it’s 52-week high of $158.8 reached in June. Now the market price is down -4.86% on the year and down -3.69% YTD.
EL’s 50 day simple moving average (SMA 50) price is $136.52 and its 200-day simple moving average (SMA 200) price is $140.62. The company’s stock currently has a total float of 217.44M shares. Its weekly volatility is hovering around 3.06% and felt 3.03% volatility in price over a month. On the upside, the share price will test short term resistance at around $127. On a downside, the stock is likely to find some support, which begins at $122.53. The failure to get near-term support could push it to $119.77.
Separately, it has been reported that multiple insider activity took place at The Estee Lauder Companies Inc. (EL). EVP & CFO Travis Tracey Thomas sold 13,297 shares for $19,467 in transaction occurred on 2018/12/03. After making this transaction, the EVP & CFO owns a direct stake of 2,027,128 shares, worth $2,439,215, as per the last closing price. On 2018/12/03 Fribourg Paul J, Director at EL, dumped 13,759 shares at an average price of $152.54 per share. The selling total is valued at $501,200.
10% Owner, Lauder Ronald S Foundation had divested 15,000 shares for $66,971 through a trade on 2018/11/19. Following this activity, the insider holds 2,140,950 shares worth $8,391,466 as of recent close. Wall Street’s most bullish The Estee Lauder Companies Inc. (NYSE:EL) analysts are predicting the share price to blow past $170 per share during the next 12 months. The current median share price forecast by them is $155, suggesting that the stock could increase 23.7% in that time frame. The average price target of $152.92 calls for a nearly 22.04% increase in the stock price.
It had seen a negative analyst call from Wells Fargo, which downgraded the stock from Outperform to Market Perform on January 10. Analysts at Goldman, shed their positive views on January 09 by lowering it fromNeutral to Sell. The stock won favor of Citigroup analysts who expressed their confidence in it using an upgrade from Neutral to Buy on January 02. JP Morgan analysts came out with bearish views on October 12 when the call was made. They think the stock is now Neutral compared to to their prior call for Overweight.
Shares of The Estee Lauder Companies Inc. (EL) have dropped -2.6% since the company’s Sep-19 earnings report. Over the past 12 fiscal quarters, The Estee Lauder Companies Inc. (NYSE:EL) has topped consensus earnings estimates in 12 quarters (100%), missed earnings in 0 quarters (0%), whereas at 0 occasion EPS met analyst expectations. EL last reported earnings on October 31, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $1.41 per share, -90.74% change on the same period last year. That was better than consensus for $1.22. Revenue for the recent quarter stood at $3.52 billion, up 8% on last year and above the $3.47 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $3.67 billion to $3.77 billion, which should be compared with $3.69 billion generated last year. EPS is seen in a range of $1.46 to $1.56, against the $1.44 reported a year ago.