Riding on high growth momentum in the prestige beauty segment, consistent double digit growth rates and expanding market share despite weak macroeconomic conditions, Estée Lauder‘s (NYSE:EL) stock has swelled by more than 40% this year. The stock jumped 18% within a day of announcing its latest quarterly results and has gained 18% within the last one month. Estee Lauder, one of the leading cosmetics and beauty care players globally, competes with others such as Revlon (NYSE:REV), L’Oreal (PINK:LRLCY) and Avon Products (NYSE:AVP).
Stock Bulls Post Strong Earnings and Analyst Upgrades
The stock jumped 18% within a day of announcing its latest quarterly results last month posting 18% sales growth, market share expansion and strong business outlook. With excellent international growth, Estee Lauder also exceeded its operating margins target of 12-13% by fiscal 2013, two years in advance and now has a new 15% operating margin target. The stock has gained more than 12% over the last month, having been upgraded by analysts almost across the board after its excellent earnings run with a $135 price target and “buy” rating by Citigroup and UBS and $130 price target by JPMorgan Chase.
- Driven By Its Strong Brand Portfolio And Distribution Channel Diversification, Estee Lauder Delivered A Robust Q2 FY 2017
- Some Of The Key Trends That Will Drive Sales In The Skincare Segment In 2017
- Estee Lauder’s Q2 FY 2017 Earnings Preview
- Along With Their Current Focus On Millennials, Beauty Companies Need To Focus On This Segment As Well
- This New Trend Followed By The Beauty Leaders Has Its Advantages As Well As Its Pitfalls
- Why Did MAC Rope In An International Team Of Beauty Influencers To Create Its New Lipstick Range?
We have a $116 Trefis price estimate for Estee Lauder stock, almost in line with the market price.