• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

elf Beauty vs Estee Lauder: Which one is the better investment?

by July 22, 2024
written by July 22, 2024

As we move into the second half of 2024, investors are keenly eyeing the beauty sector, particularly the stocks of e.l.f. Beauty Inc (NYSE: ELF) and Estée Lauder Companies Inc (NYSE: EL). 

While e.l.f. Beauty has seen a 20% increase in its stock value this year, Estée Lauder has struggled, with its stock down 35%. 

Analysts, however, see more potential in e.l.f. Beauty for the coming year.

e.l.f. Beauty’s upward momentum

Baird analyst Mark Altschwager recently upgraded e.l.f. Beauty to “outperform” in his research note, setting a price target of $230, which suggests a potential 35% upside. 

Altschwager attributes his bullish outlook to the brand’s strong momentum, expecting it to gain more market share in the future. 

Key factors include favorable Q1 checks, expansion in distribution, and opportunities for international growth.

Altschwager believes that e.l.f. Beauty can maintain its premium earnings growth despite a volatile consumer market. 

He also anticipates that the company will leverage its pricing power to counteract higher tariffs, especially if there is a potential Trump win in the 2024 U.S. elections. 

Furthermore, the recent decline in e.l.f. Beauty’s stock presents a buying opportunity for quality investors. 

However, it’s important to note that e.l.f. Beauty does not currently offer dividends, making it less attractive for income-focused investors.

Challenges facing Estée Lauder

On the other hand, Raymond James analyst Olivia Tong has downgraded Estée Lauder from “strong buy” to “market perform,” citing slower recovery in China and rising competition in the U.S. Tong’s downgrade followed disappointing sales during the June 18th shopping event in China. 

As a result, she now projects a 5% increase in FY25 sales with an adjusted EPS of $3.90, down from her previous forecast of 7% growth and $4.15 per share.

Tong warned that a slower sales rebound might necessitate increased brand support or higher promotions, potentially harming margin recovery and brand image.

Despite these challenges, Estée Lauder remains a significant player, paying a dividend yield of 2.64%.

Looking ahead

Estée Lauder is set to report its financial results for the second quarter on August 19th, with a consensus expectation of earning 26 cents per share, compared to 7 cents per share a year ago. While the company faces hurdles, its upcoming financial results could provide further insights into its recovery trajectory.

While e.l.f. Beauty appears to be the favored choice for 2024 due to its growth potential and strong market position, Estée Lauder’s established brand and dividend yield offer a different appeal. Investors should weigh these factors carefully to determine which stock aligns best with their investment strategy.

The post elf Beauty vs Estee Lauder: Which one is the better investment? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Alphabet’s Q2 earnings preview: Revenue set to surge nearly 14% driven by AI and ad market revival
next post
Long DASH: Prices Form Midpoint Gap Reversal Rebound from 5-Year VPOC

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Harris was ‘open’ to packing Supreme Court during 2019 presidential bid

    August 29, 2024
  • Bitcoin falls to a new weekly low on Tuesday below

    October 1, 2024
  • Italian village offering 1 Euro homes to Americans ‘worn out’ from election results

    November 20, 2024
  • Youngest House Republican-elect reveals how GOP won back America’s youth

    November 18, 2024
  • Disgraced ex-Sen. Bob Menendez sentenced to 11 years in bribery case

    January 29, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,993)
  • Investing (634)
  • Stock (808)

Latest Posts

  • Fetterman, McCormick react to ‘astonishing’ Boulder attack on pro-Israel group: ‘Rank antisemitism’

    June 2, 2025
  • 2028 Watch: Here are the Democrats who may eventually jump into the next White House race

    December 30, 2024
  • Technical Difficulties Delay Trump-Musk Chat On X

    August 13, 2024

Recent Posts

  • Biden DOJ to accuse Russia of trying to influence 2024 presidential election: report

    September 4, 2024
  • House advances Trump’s $9.4B spending cuts package targeting NPR, PBS, USAID to House-wide vote

    June 11, 2025
  • Biden campaign hypes president’s foreign policy chops after high-stakes NATO press conference

    July 13, 2024

Editor’s Pick

  • Trump’s ‘big, beautiful bill’ heads to House-wide vote after key committee victory

    May 22, 2025
  • Long MELI: breaking weekly resistance, poised to surpass $2020 amid strong growth and market momentum

    August 9, 2024
  • Senate Republicans plan hearing on Biden’s alleged cognitive decline cover-up

    May 29, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock