The Estée Lauder Companies Inc. (EL), headquartered in New York, manufactures, markets, and sells skin care, makeup, fragrance, and hair care products. Valued at $41.9 billion by market cap, the company’s products are sold through department stores, mass retailers, company-owned retail stores, hair salons, and travel-related establishments.
Shares of this global leader in prestige beauty have outperformed the broader market over the past year. EL has gained 40.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.4%. In 2026, EL’s stock is up 11%, surpassing SPX’s 1.1% rise on a YTD basis.
Zooming in further, EL’s outperformance is also apparent compared to the Consumer Staples Select Sector SPDR Fund (XLP). The exchange-traded fund has gained about 8.3% over the past year. Moreover, EL’s gains on a YTD basis outshine the ETF’s 10.5% returns over the same time frame.
EL’s strong performance is driven by organic sales growth and profitability goals. Highlights include M.A.C Cosmetics’ U.S. launch via Sephora in early 2026, strong skincare and fragrance sales, and global growth outside the Americas. They’re also embracing AI with Jo Malone London’s Scent Advisor, which is Alphabet Inc.’s (GOOGL) Google Cloud-powered tool offering personalized fragrance picks online, boosting their fragrance push.
For the current fiscal year, ending in June, analysts expect EL’s EPS to grow 43.7% to $2.17 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 24 analysts covering EL stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” 14 “Holds,” and one “Strong Sell.”
This configuration is more bullish than a month ago, with seven analysts suggesting a “Strong Buy.”
On Jan. 30, Telsey Advisory analyst Dana Telsey maintained a “Hold” rating on EL and set a price target of $105.
While EL currently trades above its mean price target of $110.48, the Street-high price target of $140 suggests an upside potential of 20.4%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
