Estee Lauder (EL) shares soared 12.2% in the last trading session to close at $56.16. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 28.1% loss over the past four weeks.
The Estee Lauder Companies stock gained momentum as investor sentiment improved amid a broader market rally, following President Donald Trump’s announcement of a 90-day pause on reciprocal tariffs for all countries except China. The company’s Profit Recovery and Growth Plan, combined with its strong digital strategy and focus on high-growth emerging markets, continues to support positive investor outlook.
This beauty products company is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of -68%. Revenues are expected to be $3.51 billion, down 10.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Estee Lauder, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Estee Lauder is part of the Zacks Cosmetics industry. European Wax Center, Inc. (EWCZ), another stock in the same industry, closed the last trading session 16.7% higher at $3.84. EWCZ has returned -26.1% in the past month.
For European Wax Center
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The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report European Wax Center, Inc. (EWCZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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