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Estée Lauder's sweet smell of success

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EsteeLauder2

Estee Lauder Companies Inc (EL)

The sweet smell of success only got sweeter, and the businesswoman behind it all said it best when explaining her success, "I have never worked a day in my life without selling. If I believe in something, I sell it, and I sell it hard." - Estée Lauder.

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Fundamentals

The company recently reported (on the 31st of October 2019) its financial results for its first quarter ended September 2019, which delivered outstanding results once again. Net sales increased 11% from the prior-year period with net earnings rising 19% to $595 million, compared with $500 million last year.

Estée Lauder share overview:

  • Sector: Consumer Staples.
  • Market Cap: $68.54 Billion.
  • Dividend Yield: 1%
  • Shares outstanding: 359.81 million.
  • 52 Week Range low of $121.47 and $207.50 per share high.

Estée Lauder Companies Inc will also be paying a $0.48 per share quarterly dividend, with the stock going ex-dividend on the 27th of November 2019.

Outlook

The share price took a 5% knock after the forward guidance outlook fell below expectations.The company expects strong consumer demand for its products and is expected to grow approximately 5% to 6% during the fiscal year if no additional geopolitical risks materialize.

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Chart Life

The price action on Estée Lauder has finally broken out of a descending channel price formation which shows promise for buyers to enter the market. Take note that we might see the price action re-test this breakout in the short term before pushing higher.

el
Source - Bloomberg

Portfolio particulars

  • Portfolio Hold (Current)*
  • Portfolio Buy opportunity: close above $194.32 per share**
  • WhatsTheBeef long term target price: $205.00 per share.

Know your company: Estée Lauder Companies Inc (EL)

  • The cosmetics giant founded by husband and wife duo, Estee and Joseph Lauter who changed his surname to Lauder shortly after getting married.
  • The company was founded 73 years ago in New York with only four products: Cleansing Oil, Skin Lotion, Super Rich All-purpose Creme, and Creme Pack.
  • Estee Lauder was the only woman on Time magazine's 1998 list of the 20 most influential business geniuses of the 20th century.
  • "I didn't get here by dreaming or thinking about it. I got here by doing it."- Estée Lauder

Source - Estee Lauder Companies, Wikipedia, KOYFIN, SeekingAlpha, Investing.com, Yahoo Finance, Entrepreneur


*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio.

**Portfolio Buy opportunity refers to Technical level crossed which might imply that the markets behavior would support the outlook and Close above refers to a share price close above a Technical Resistance level.



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Barry is a market analyst with GT247.com, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table

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