- Estee Lauder’s shares gained 15% last week, among the highest in consumer and retail stocks.
- Analysts point to stabilizing business in China, a major market, and travel retail channels.
- Estee Lauder will release its Q1 2026 results on Oct. 30.
Estee Lauder Cos. Inc.’s stock gained 15% last week, its best weekly performance since September 2024, and was one of the the top gainer among retail and consumer stocks in the period.
EL has gained for six straight sessions, hitting an over 52-week high on Friday.
Brokerages say that beauty product sales are rebounding in China, a major market for Estee Lauder, and at travel touch points like airports. Weakness in China and Asian markets broadly has weighed on Estee Lauder’s overall business for several quarters.
The cosmetics giant will report its fiscal first quarter 2026 results on Oct. 30. Analysts expect revenue to rise 0.5% to $3.38 billion, after four quarters of decline, according to Koyfin data. Adjusted EPS is expected to increase by 22% to $0.17 after three quarters of de-growth.
At the start of last week, Goldman Sachs upgraded its rating on the company’s shares to ‘Buy’ from ‘Neutral’ and bumped its price target to $115 from $76, citing stronger growth momentum and margin recovery, partly driven by improvement in China sales.
Estee Lauder should return to double-digit EBIT margins in fiscal 2027 and beyond, the research said in its investor note.
In the past month, brokerages such as JPMorgan, Deutsche Bank, Barclays, and HSBC have raised their price targets on EL shares. Currently, 18 of the 26 analysts covering the shares recommend ‘Hold,’ and eight recommend ‘Buy’ or higher, according to Koyfin. Their average price target of $95.09 is 5.6% lower than the stock’s last close.
Optimism for Estee Lauder, which sells skincare, makeup, fragrance, and hair care products under brands such as MAC, Clinique, and La Mer, is also driven by a few growth initiatives rolled out recently.
Analyst commentary signals a positive view of the company’s expansion of direct sales on Amazon and TikTok and an ongoing restructuring. In February, the company announced plans to eliminate up to 7,000 roles and book charges between $1.2 billion and $1.6 billion, as part of a major overhaul that will run through fiscal year 2027.
On Stocktwits, the retail sentiment for EL stock shifted to ‘bullish’ as of late Sunday, from ‘extremely bullish’ the previous day. Year-to-date, EL stock is up 34%.
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