EL Stock Plunges 19% - Here's Why Analysts Still Think Buyers Have A Shot At Big Gains

The Estee Lauder Companies Inc. (NYSE:EL) reported stronger-than-expected second-quarter results on Thursday, but the EL stock fell more than 19% amid tariff threats and lower than expected guidance for full-year adjusted earnings per share (EPS) forecast.

Estee Lauder reported Q2 adjusted EPS of $0.89, beating analyst estimates of $0.83, while its revenue of $4.229 billion was also ahead of Wall Street estimates of $4.219 billion.

FY26 EPS Forecast Misses Street Expectations

Estee Lauder raised its fiscal year 2026 adjusted EPS forecast to $2.03-$2.23 per share from $1.90-$2.10. At the mid-point of the revised guidance of $2.13, it missed Wall Street expectations of $2.15.

The company expects the net sales to grow between 3 to 5%. At the mid-point of the revised guidance of 4%, it is lower than analyst expectations of 4.3%.

Tariff Threat Casts Shadow

The company said that tariff-related headwinds will continue to cast a shadow on the company's fiscal year 2026 profitability by around $100 million.

The company expects the impact of tariffs to mostly reflect in the second half of the year. The company said that it has been "actively evaluating developments and mitigation strategies."

Should You Buy, Sell, Or Hold EL?

Analysts at Telsey Advisory Group have maintained a "Market Perform" rating for EL, keeping the price target of $105 unchanged.

From the closing price of $95.66 on Thursday, this implies an upside of 9.7%.

According to the firm, Estee Lauder's Q2 results indicate that the company is making progress in its "Beauty Reimagined" strategy, which was introduced by CEO Stéphane de La Faverie. This aims to restore sales growth and double-digit adjusted operating margin.

The analysts say there is a "general level of uncertainty related to consumer spending" in 2026 as consumers remain cautious and the price of goods remains high.

RBC Capital maintains an “Outperform” rating and has set the price target at $113, suggesting an upside of 16.9%. Deutsche Bank has a “Buy” rating with a price target of $128, up from $124, an upside of 32.4%.

TD Cowen maintains a “Hold” rating and has increased the price target from $115 to $130, an upside of 34.5%.

Estee Lauder maintains a stronger price trend over the long term anda weak trend over the short and medium terms with a poor quality ranking, as per Benzinga’s Edge Stock Rankings

Price Action: EL stock declined 19.19% to close at $96.66 on Thursday. EL was up 0.75% in pre-market trading on Friday. The company's shares are down 7.7% year-to-date.

Photo courtesy: Shutterstock