Estee Lauder (EL, $172.00) fiscal Q3 earnings beat estimates
Estee Lauder Companies’ fiscal third quarter earnings surpassed expectations, on the back of strong revenue from Asia and several beauty brands.
For the three months ending in March, the skincare and cosmetics company’s diluted earnings came in at $1.51 per share, which beat analysts’ estimates of $1.30 per share. Total group sales increased +11% year-over-year to $3.74 billion – also higher than analysts’ estimates.
For the full-year 2019, Estee Lauder predicted that its adjusted earnings would range between $5.15 and $5.19 per share, up from its February projection of $4.92 and $5.00 range.
CEO Fabrizio Freda highlighted the Asia/Pacific region, the skin care brands, the Estee Lauder, La Mer and Tom Ford Beauty brands, and travel retail and global online channels as the main contributors to growth for the quarter.
EL sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for EL moved below the 200-day moving average on May 05, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
EL moved below its 50-day moving average on May 03, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for EL crossed bearishly below the 50-day moving average on May 04, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for EL entered a downward trend on June 07, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where EL's RSI Oscillator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The Moving Average Convergence Divergence (MACD) for EL just turned positive on May 26, 2023. Looking at past instances where EL's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EL advanced for three days, in of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
EL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. EL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. EL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (11.025) is normal, around the industry mean (69.015). P/E Ratio (59.524) is within average values for comparable stocks, (182.740). Projected Growth (PEG Ratio) (4.387) is also within normal values, averaging (7.143). Dividend Yield (0.014) settles around the average of (0.027) among similar stocks. P/S Ratio (4.127) is also within normal values, averaging (69.667).
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Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a company which offers skin care, makeup, fragrance and hair care products
Industry HouseholdPersonalCare
EL and
Correlation & Price change
A.I.dvisor indicates that over the last year, EL has been loosely correlated with COTY. These tickers have moved in lockstep 64% of the time. This A.I.-generated data suggests there is some statistical probability that if EL jumps, then COTY could also see price increases.
