Estee Lauder Earns Relative Strength Rating Upgrade Amid Rising Sales, Profits Including 87% Pop In Q3 EPS

Beauty products giant Estee Lauder is looking good as it continues a post-coronavirus-crash recovery that it entered in mid-2020. It’s reported rising profits and sales over the past three quarters, including an 87% leap in earnings per share last quarter, its fiscal Q3. On Tuesday, the Relative Strength (RS) Rating for Estee Lauder (EL) climbed into a higher percentile, as it rose to 72, up from 69 the day before.


The 72 RS Rating means New York-based Estee Lauder is outperforming 72% of all stocks. The stocks that go on to make the biggest gains tend to have an RS Rating of above 80 in the early stages of their moves. See if Estee Lauder can continue to rebound and hit that benchmark.

Estee Lauder Sees Escalating Profits

The maker of beauty, skin care and makeup products also has a strong 85 EPS Rating. On May 3 the company reported the 87% hike in earnings to $1.59 a share. That came after it recorded a 21% increase in earnings the prior quarter, which reversed from a 14% drop in EPS for the Sept. 30-ended period.

Estee Lauder CEO Fabrizio Freda commented in the Q3 earnings release, “We expect the momentum in our sales growth to build in the fourth quarter of fiscal 2021, not only from easing comparisons but also fundamental strength, as we drive recovery.”

Despite Estee Lauder’s rising EPS and revenue, the Q3 earnings were lower than the Street expected and the company’s stock fell nearly 8% on May 3. It’s been slowly working its way back up this month. Shares were up about 1% Tuesday afternoon, to 305.46. It’s trading near its all-time high 318.34, reached on April 29.

Estee Lauder holds the No. 6 rank among its peers in the Cosmetics/Personal Care industry group. Nu Skin Enterprises (NUS) and Inter Parfums (IPAR) are also among the group’s highest-rated stocks.

Looking For The Best Stocks To Buy And Watch? Start Here

Estee Lauder is not currently showing a potential buy point. See if the stock goes on to form a chart pattern that could kick off a new price move.

When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.

This exclusive rating from Investor’s Business Daily tracks share price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price movement over the trailing 52 weeks stacks up against all the other stocks in our database.


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