The stock price of Estee Lauder Cos., Inc (NYSE: EL) has surged by 2.11 when compared to previous closing price of 73.45, but the company has seen a 3.94% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2025-01-13 that Seeking Alpha’s Quant Valuation and Growth Grades identify 6 blue-chip stocks with extremely high valuations matched against limited operating growth potential. Costco, Cencora, West Pharmaceutical Services, Danaher, Madison Square Garden Sports, and Estée Lauder appear to be at risk of disappointing investors in 2025. Weakening technical performance vs. the S&P 500 is part of the bearish sell/avoid equation for each since summer.
Is It Worth Investing in Estee Lauder Cos., Inc (NYSE: EL) Right Now?
Estee Lauder Cos., Inc (NYSE: EL) has a price-to-earnings ratio of 133.93x that is above its average ratio. Additionally, the 36-month beta value for EL is 1.01. There are mixed opinions on the stock, with 3 analysts rating it as a “buy,” 2 rating it as “overweight,” 25 rating it as “hold,” and 1 rating it as “sell.”
The public float for EL is 232.35M and currently, short sellers hold a 3.70% ratio of that float. The average trading volume of EL on January 14, 2025 was 4.67M shares.
EL’s Market Performance
The stock of Estee Lauder Cos., Inc (EL) has seen a 3.94% increase in the past week, with a -9.18% drop in the past month, and a -21.00% fall in the past quarter. The volatility ratio for the week is 3.64%, and the volatility levels for the past 30 days are at 2.98% for EL. The simple moving average for the last 20 days is -0.49% for EL stock, with a simple moving average of -25.74% for the last 200 days.
Analysts’ Opinion of EL
Many brokerage firms have already submitted their reports for EL stocks, with Telsey Advisory Group repeating the rating for EL by listing it as a “Market Perform.” The predicted price for EL in the upcoming period, according to Telsey Advisory Group is $76 based on the research report published on November 01, 2024 of the previous year 2024.
JP Morgan, on the other hand, stated in their research note that they expect to see EL reach a price target of $74, previously predicting the price at $113. The rating they have provided for EL stocks is “Neutral” according to the report published on November 01st, 2024.
Wells Fargo gave a rating of “Equal Weight” to EL, setting the target price at $72 in the report published on October 31st of the previous year.
EL Trading at 3.19% from the 50-Day Moving Average
After a stumble in the market that brought EL to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -53.05% of loss for the given period.
Volatility was left at 2.98%, however, over the last 30 days, the volatility rate increased by 3.64%, as shares sank -7.66% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -15.49% lower at present.
During the last 5 trading sessions, EL rose by +3.94%, which changed the moving average for the period of 200-days by -46.16% in comparison to the 20-day moving average, which settled at $75.37. In addition, Estee Lauder Cos., Inc saw 0.03% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at EL starting from TRAVIS TRACEY THOMAS, who proposed sale 6,370 shares at the price of $81.42 back on Dec 10 ’24. After this action, TRAVIS TRACEY THOMAS now owns shares of Estee Lauder Cos., Inc, valued at $518,645 using the latest closing price.
FRIBOURG PAUL J, the Director of Estee Lauder Cos., Inc, purchase 77,800 shares at $64.48 during a trade that took place back on Nov 19 ’24, which means that FRIBOURG PAUL J is holding 387,800 shares at $5,016,181 based on the most recent closing price.
Stock Fundamentals for EL
Current profitability levels for the company are sitting at:
- 0.08 for the present operating margin
- 0.72 for the gross margin
The net margin for Estee Lauder Cos., Inc stands at 0.01. The total capital return value is set at 0.08. Equity return is now at value 3.89, with 0.92 for asset returns.
Based on Estee Lauder Cos., Inc (EL), the company’s capital structure generated 0.62 points at debt to capital in total, while cash flow to debt ratio is standing at 0.26. The debt to equity ratio resting at 1.61. The interest coverage ratio of the stock is 3.02.
Currently, EBITDA for the company is 1.98 billion with net debt to EBITDA at 4.24. When we switch over and look at the enterprise to sales, we see a ratio of 2.24. The receivables turnover for the company is 7.8for trailing twelve months and the total asset turnover is 0.72. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.32.
Conclusion
In conclusion, Estee Lauder Cos., Inc (EL) has seen mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
