Helen of Troy (HELE, $111.97) puts beauty segment up for sale
According to the Wall Street Journal, personal care and household products company Helen of Troy Ltd is looking to exit the mass-market beauty segment amidst the company’s overall shift towards more niche personal care brands and products.
The beauty business segment that makes Revlon hair dryers and Pert shampoo is likely to sell this beauty segment at an estimated $300 million. The sale is expected to consist of brands that are generally sold at drug stores and discount retailers, including Sure deodorant and Brut cologne. The proceeds will go towards housewares and health businesses.
Being the smallest business segment, HELE has been struggling as its sales from this division came at $356 million, down 18% from the $435 million it made in 2015. Majority of the market shares has been taken away from the company by speciality beauty stores like Sephora and Mac that also sell their products in drug stores and discount retailers.
In the fiscal 2018, half the company’s revenue was made by its health-and-home unit, which features PUR water filters and Vicks humidifiers.
HELE saw its Stochastic Oscillator leaves the overbought zone
The Stochastic Oscillator for HELE moved out of overbought territory on May 25, 2023. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 67 similar instances where the indicator exited the overbought zone. In of the 67 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HELE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 07, 2023. You may want to consider a long position or call options on HELE as a result. In of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for HELE just turned positive on June 07, 2023. Looking at past instances where HELE's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
HELE moved above its 50-day moving average on May 10, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for HELE crossed bullishly above the 50-day moving average on May 09, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher 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 HELE advanced for three days, in of 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
HELE 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. HELE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average 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 slightly better than average sales and a considerably 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 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 (1.641) is normal, around the industry mean (69.015). P/E Ratio (17.094) is within average values for comparable stocks, (182.740). Projected Growth (PEG Ratio) (1.444) is also within normal values, averaging (7.143). HELE has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.027). P/S Ratio (1.181) is also within normal values, averaging (69.667).
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. HELE’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 worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of personal care electrical and non-electrical products
Industry HouseholdPersonalCare
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HELE and
Correlation & Price change
A.I.dvisor indicates that over the last year, HELE has been loosely correlated with NWL. These tickers have moved in lockstep 48% of the time. This A.I.-generated data suggests there is some statistical probability that if HELE jumps, then NWL could also see price increases.
| Ticker / NAME | Correlation To HELE | 1D Price Change % | ||
|---|---|---|---|---|
| HELE | 100% | +2.95% | ||
| NWL - HELE | 48% Loosely correlated | +3.00% | ||
| COTY - HELE | 48% Loosely correlated | -2.19% | ||
| SPB - HELE | 44% Loosely correlated | -0.72% | ||
| NUS - HELE | 41% Loosely correlated | +2.37% | ||
| IPAR - HELE | 39% Loosely correlated | -0.45% | ||
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