Estee Lauder Cos Inc (EL): Today's Featured Consumer Goods Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Estee Lauder Cos ( EL) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.8%. By the end of trading, Estee Lauder Cos rose $1.78 (2.6%) to $71.05 on average volume. Throughout the day, 1,697,616 shares of Estee Lauder Cos exchanged hands as compared to its average daily volume of 1,784,400 shares. The stock ranged in a price between $69.16-$71.09 after having opened the day at $69.32 as compared to the previous trading day's close of $69.27. Other companies within the Consumer Goods sector that increased today were: Mannatech ( MTEX), up 16.1%, Forward Industries ( FORD), up 14.0%, Tesla Motors ( TSLA), up 10.6% and Stephan Company ( TSC), up 10.0%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

The Estee Lauder Companies Inc. engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. Estee Lauder Cos has a market cap of $16.7 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 28.2, above the S&P 500 P/E ratio of 17.7. Shares are up 15.7% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Estee Lauder Cos a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Estee Lauder Cos as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the negative front, Entertainment Gaming Asia ( EGT), down 7.1%, Central European Distribution ( CEDC), down 6.9%, Ballantyne Strong ( BTN), down 6.3% and China New Borun Corporation ( BORN), down 5.8%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null

If you liked this article you might like

Unfortunately Red Hot Economic Data Supports Higher Interest Rates

Unfortunately Red Hot Economic Data Supports Higher Interest Rates

Jim Cramer: The Surprising Stock Market Winners That Investors Are Chasing

Jim Cramer: The Surprising Stock Market Winners That Investors Are Chasing

How High Can This Market Go?: Cramer's 'Mad Money' Recap (Friday 1/12/18)

How High Can This Market Go?: Cramer's 'Mad Money' Recap (Friday 1/12/18)

Estee Lauder, Mastercard, Waste Management: 'Mad Money' Lightning Round

Estee Lauder, Mastercard, Waste Management: 'Mad Money' Lightning Round