The S&P 500 rose 7.91 points, or 0.57% to 1,405.82 as Wall Street began May on a positive note with investors encouraged by a strong read on manufacturing activity last month.
Shares of Avon Products dropped 8.01% to $19.87 on Tuesday. The beauty products company reported first-quarter earnings of $26.5 million, or 6 cents a share, down from year-earlier earnings of $143.6 million, or 33 cents per share.
The stock currently trades at an estimated price-to-earnings ratio for next year of 11.89X; the average for personal products companies is 15.59X. For comparison, Estee Lauder (EL) has a higher forward P/E of 24.61X.Eleven of the 16 analysts who cover Avon Products rate it at hold. Four analysts give the stock a buy rating and one rates it at sell. The stock has risen 13.74% year to date.