Helen of Troy Limited is reportedly considering a sale of its beauty segment.
According to the Wall Street Journal, the company wants to focus more on its health and household products, and is therefore looking to divest its beauty division. The sale of the segment, which supplies Revlon hair dryers and Beadhead TIGI shampoos among other products, is estimated to fetch $300 million in proceeds (according to the Journal, citing sources familiar with the matter).
While health and housewares made up more than half of Helen’s revenue as of 2018, its beauty unit is quite small in comparison. The unit is apparently facing stiff competition from cosmetics/beauty brands such as Estee Lauder and Sephora.
The Moving Average Convergence Divergence (MACD) for HELE turned positive on May 02, 2024. Looking at past instances where HELE's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where HELE's RSI Indicator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 cases where HELE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 320 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.
The 50-day moving average for HELE moved below the 200-day moving average on April 16, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 .
The Aroon Indicator for HELE entered a downward trend on May 03, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average 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 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 (1.715) is normal, around the industry mean (59.633). P/E Ratio (16.976) is within average values for comparable stocks, (196.255). Projected Growth (PEG Ratio) (1.459) is also within normal values, averaging (3.746). Dividend Yield (0.000) settles around the average of (0.106) among similar stocks. P/S Ratio (1.376) is also within normal values, averaging (118.390).
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 83, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of personal care electrical and non-electrical products
Industry HouseholdPersonalCare