Is Estee Lauder Companies Inc. (EL) Among the Top Stocks to Buy in Michael Burry's Stock Portfolio?

The Estée Lauder Companies Inc. (NYSE:EL) is one of the top stocks to buy in Michael Burry’s stock portfolio. As of October 8, Estée Lauder Companies is one of the stocks flying high, with a 25% year-to-date gain better than the 14% gains for the S&P 500.

The impressive run comes as the company establishes itself as a leader in prestige beauty, backed by a portfolio of 25 brands and operations in over 150 countries. It boasts an impressive 74% gross profit margin, which affirms its status as the second-largest player in the $160 billion prestige beauty market.

Amid the impressive run, analysts at Bank of America Securities maintain a ‘Buy’ rating on the stock and a $110 price target. The bullish stance underscores the research firm’s confidence about the company’s recovery in Asia and restructuring plan. The ‘Beauty Reimagined’ plan is also bearing results.

The Estée Lauder Companies Inc. (NYSE:EL) manufactures, markets, and sells prestige beauty products, including skin care, makeup, fragrance, and hair care, under a diverse portfolio of consumer-beloved luxury brands. It focuses on innovation, quality, and end-to-end execution to create transformative beauty products and experiences for consumers in over 150 countries.

While we acknowledge the potential of EL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.