American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Estee Lauder stock price analysis: rebound can’t be ruled out

by admin May 16, 2025
May 16, 2025
Estee Lauder stock price analysis: rebound can’t be ruled out

Estee Lauder stock price has been left behind in the past few years as the once-popular brand goes through its deepest slump in years. It has plunged from a high of $354 in January 2022 to $63, erasing billions of value and costing thousands of jobs.

EL stock price was trading at $63.67 on Thursday, a few points above the year-to-date low of $49.35. This article explains why the shares have plunged and why technicals point to a rebound soon.

EL stock has crashed as growth wanes

Estee Lauder, one of the top players in the cosmetics industry, has been in a deep slump in the past few years as its growth waned. Its annual results show that its revenue peaked at $17.7 billion in 2022 and then dropped to $15.9 billion in 2023 and $15 billion last year.

Analysts anticipate that this trend will continue this year, and possibly change next year if the anagement’s strategy works. The average estimate is that its revenue will drop by 8.4% this year to $14.30 billion. 

Estee Lauder’s slowdown is mostly happening in China, one of its biggest markets outside the United States. Its American business is also not doing well as consumers shift to other cheaper brands like ELF. 

All its segments are struggling, with the worst-performing ones being the skin care and hair care businesses. The most recent numbers showed that its skin care and hair care revenue dropped by 12%, while the makeup and fragrance figure fell by 9% and 3%.

Read more: How a China bet and generational shifts cost Estée Lauder $100 billion

The total revenue in Q1 came in at $3.5 billion, a 10% decline from the previous $3.9 billion. As a result, profitability was also affected, with the net earnings fallng by over 53% to $159 million. 

The company, now under Stephane de La Faverie, is implementing a strategy known as ‘Beauty Reimagined’. Its goal is to restore growth by accelerating the best-in-class consumer coverage, boosting innovation, making more consumer-facing investments, and improve efficiencies. 

As part of the latter approach, the management has already announced mass layoffs as it hopes to save between $800 million and $1 billion a year. It is slashing about 11% of its workforce or about 7,000 people.

Its strategy also calls for more e-commerce, increased focus on premium brands, and change how it advertises.

Wall Street analysts are largely neutral on Estee Lauder stock, with the average target price being $67.55, slightly up from $63.67. 

Estee Lauder stock price analysis

EL stock by TradingView

The weekly chart shows that the EL stock price has been in a strong downtrend in the past few years, moving from a high of $354 in 2022 to $50. 

On the positive side, it has formed a highly bullish falling wedge pattern, which consists of two descending and converging trendlines. In most cases, this pattern leads to a strong bullish breakout when the two lines are nearing their confluence.

Therefore, the stock will likely have a strong bullish breakout, with the next point to watch being at $99.6, the lowest point in October 2023. 

The post Estee Lauder stock price analysis: rebound can’t be ruled out appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Asian markets close: Nikkei flat as Japan’s GDP contracts; Sensex dips 200 pts
next post
Abu Dhabi’s Mubadala boosts Bitcoin ETF stake to $408.5M despite Q1 slump

Related Posts

Shein’s global ambitions leaves some cybersecurity experts fearful...

July 11, 2024

Tiger Woods unveils new lifestyle brand and clothing...

February 15, 2024

Some consumers are punting big purchases like pools...

May 20, 2024

All the data so far is showing inflation...

April 28, 2024

What were the most-searched money topics of 2024?...

January 1, 2025

Top 2 reasons why the Wise share price...

June 5, 2025

Powell Industries stock price sends mixed signals: is...

April 15, 2025

IAG share price has crashed: to get worse...

March 20, 2025

Here’s why the EasyJet share price could surge...

November 28, 2024

Grupo Mexico reports 17% rise in Q1 net...

April 26, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,032)
    • Investing (2,462)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved