Estee Lauder stock price has staged a strong comeback in the past few months, moving from a low of $48 in April last year to the current $116. It is now hovering near the highest level since June 10, 2024 as investors bet that the ongoing turnaround strategy will work out.
Estee Lauder is implementing a turnaround strategy
Estee Lauder, a top player in the skin care, cosmetics, haircare, and fragrances, has been under pressure in the past few years as its revenue growth has slowed.
Data compiled by Seeking Alpha shows that its annual revenue has dropped in the past few years, moving from over $18 billion in 2021 to $14.3 billion in the last financial year.
Estee Lauder’s weakness has happened as competition has jumped across all its brands and as its Chinese business continued weakening. It also blamed its weakness to Donald Trump’s tariffs since it manufactures its products abroad.
READ MORE: Estee Lauder surge 7% after Goldman Sachs upgrade to “Buy”
Most importantly, analysts expect that its profits will rise, with the annual earnings-per-share rising to $2.17 from $1.51. It will then rise to $2.94 in the next financial year.
Therefore, the management is working on a turnaround strategy that will boost its revenue growth in the coming years. It has changed management, announced huge layoffs, and hired consultants to review its brands. The review will likely see it sell some of its brands and possibly acquire some others.
The management will provide more information about its business when it releases its financial results on Thursday this week.
Wall Street analysts believe that the company’s revenue rose by 5.5% in the fourth quarter to over $4.22 billion. Analysts also expect that its annual revenue will be $15 billion, up by 4.74% YoY. They expect its revenue to hit $15.6 billion in the next financial year.
The upcoming results will provide more color on whether the new sales and marketing strategy is working. It has invested in key platforms like TikTok and Amazon as it shifted away from department stores. In line with this, it hired its first digital chief last year.
Estee Lauder stock price technical analysis
EL stock chart | Source: TradingView
The three-day timeframe chart shows that the EL stock price has rebounded in the past few months, moving from a low of $48 in 2025 to the current $116.
It has moved to the 23.6% Fibonacci Retracement level. Also, the 100-day and 50-day Exponential Moving Averages (EMA) have formed a bullish crossover, which is a highly bullish sign.
The stock’s Percentage Price Oscillator (PPO) and the Relative Strength Index (RSI) have continued rising.
Therefore, the most likely scenario is where it continues rising in the near term, with the next key level to watch being at $200, which is along the 50% Fibonacci Retracement level. This target is about 77% above the current level.
However, there is a likelihood that the stock will also retreat after its earnings, especially if the numbers show that the Chinese business is still weakening. If this happens, it will retreat to the 50-day moving average at $97.
The post Estee Lauder stock price sits and waits for earnings: will it pop or drop? appeared first on Invezz