• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

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

by May 16, 2025
by May 16, 2025

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 comment
0
FacebookTwitterPinterestEmail

previous post
UAE’s president bestows highest civilian honor on Trump
next post
Abu Dhabi’s Mubadala boosts Bitcoin ETF stake to $408.5M despite Q1 slump

Related Posts

Rolls-Royce share price is cheap by 20%, the...

June 11, 2025

Petrobras stock price forms rare pattern pointing to...

June 11, 2025

US and Mexico close to agreement on easing...

June 11, 2025

Crude oil awaits fresh catalyst to rise further:...

June 11, 2025

Supply chain issues force India’s Maruti to revise...

June 11, 2025

Europe markets open: Stoxx 600 steady as US-China...

June 11, 2025

Here’s why Zara’s Inditex share price is soaring

June 11, 2025

After Epstein ‘bomb’ & Trump’s wrath, Elon Musk...

June 11, 2025

Rheinmetall share price has jumped: here’s why it...

June 11, 2025

Surge in wider Arabian Sea middle distillate exports...

June 10, 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.

Recent Posts

  • AIER’s Everyday Price Index Sees Modest May 2025 Increase

    June 11, 2025
  • Improving on the One Big Beautiful Reconciliation Bill

    June 11, 2025
  • The Economics of Divorce: A New Paper Examines the Harm to Children

    June 11, 2025
  • Anacove expands hotel toilet leak detector availability to combat hidden profit loss from water waste

    June 11, 2025
  • Improving on the One Big Beautiful Reconciliation Bill

    June 11, 2025
  • The Economics of Divorce: A New Paper Examines the Harm to Children

    June 11, 2025

Editors’ Picks

  • 1

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 2

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,428)
  • Editor's Pick (151)
  • Investing (165)
  • Stock (924)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

From Powell to policy: Wall Street grapples...

March 22, 2025

Hang Seng Tech index: Here’s why China’s...

March 5, 2025

Which US sectors are most at risk...

April 7, 2025