June 29, 2018

EL – Market expectations are for Uniform ROA expansion, and management is confident about growth, Hill’s, and e-commerce


  • The Estée Lauder Companies Inc. (EL:USA)currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 31.4x Uniform P/E, implying bullish expectations for the firm. Moreover, management is confident about growth, demand, and competition
  • Specifically, management is confident in their strong broad-based growth across all regions and product categories, and in the rapid growth of Clinique’s new Moisture Surge 72-Hours Auto-Replenishing Hydrator during the quarter. Additionally, they are confident in the 6%-7% global prestige beauty market growth they are seeing in fiscal 2018, and that big brands have a chance to continue winning even in the currently competitive environment

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