Back to top

Image: Bigstock

Why Earnings Season Could Be Great for Estee Lauder (EL)

Read MoreHide Full Article

Investors are always looking for stocks that are poised to beat at earnings season and The Estee Lauder Companies Inc. (EL - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Estee Lauder is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for EL in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at a loss of 11 cents per share for EL, compared to a broader Zacks Consensus Estimate of a loss of 19 cents per share. This suggests that analysts have very recently bumped up their estimates for EL, giving the stock a Zacks Earnings ESP of +40.22% heading into earnings season.

The Estee Lauder Companies Inc. Price and EPS Surprise
 

The Estee Lauder Companies Inc. Price and EPS Surprise


The Estee Lauder Companies Inc. price-eps-surprise
| The Estee Lauder Companies Inc. Quote

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).

Given that EL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for Estee Lauder, and that a beat might be in the cards for the upcoming report.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Estee Lauder Companies Inc. (EL) - free report >>

Published in