EL Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Estee Lauder Companies Inc (EL) is not a strong buy for a beginner, long-term investor at this time. While the company has shown some positive financial indicators like revenue growth and improved gross margins, the significant decline in net income and EPS, coupled with insider selling and mixed analyst sentiment, suggests caution. The technical indicators are neutral to slightly positive, but there are no strong proprietary trading signals or compelling catalysts to justify immediate action. Holding off for clearer growth visibility or a better entry point is recommended.
The technical indicators are mixed. The MACD is positive but contracting, suggesting weakening momentum. The RSI is neutral at 51.212, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot level of 111.773, with support at 107.354 and resistance at 116.193. Overall, the technicals do not strongly indicate a buy signal.
Revenue growth of 5.62% YoY in Q2
Improved gross margin to 76.5%, up 0.53% YoY.
Citi and JPMorgan view the recent selloff as a buying opportunity, citing improved fundamentals under the new CEO's strategy.
Significant decline in net income (-127.46% YoY) and EPS (-126.83% YoY).
Insider selling has surged by 38210.71% over the last month.
Mixed analyst ratings with multiple downgrades and reduced price targets.
Tougher sales comparables in China and muted growth expectations for the second half of the fiscal year.
In Q2 2026, Estee Lauder reported revenue growth of 5.62% YoY to $4.229 billion, but net income dropped significantly by -127.46% YoY to $162 million. EPS also declined by -126.83% YoY to $0.44. Gross margin improved slightly to 76.5%, up 0.53% YoY, indicating some operational efficiency.
Analyst sentiment is mixed. Recent downgrades include HSBC lowering the rating to Hold with a price target of $106 and TD Cowen reducing the target to $115. However, Citi and JPMorgan upgraded or maintained Buy ratings, citing the recent selloff as a buying opportunity. The consensus reflects skepticism about short-term growth but acknowledges improved fundamentals under the new CEO.
