Estee Lauder Companies, Inc. (EL) has been a topic of discussion on Reddit, with users debating whether the stock is a bargain or a trap. Despite a challenging year, with the stock down over 50%, some investors see potential due to its historically low valuation multiples. Concerns include weak sales in China, sluggish recovery in travel retail, shrinking margins, and recent leadership changes. However, the company’s iconic brand portfolio and long-term growth potential in the global beauty market offer a glimmer of hope. Estee Lauder's Profit Recovery and Growth Plan aims to rebuild margins and optimize operations over the next few years, which some see as a positive step forward.
Reddit users have mixed opinions on Estee Lauder's current position. One user noted, "The management is doing a bad job of appealing to younger audiences," while another highlighted the company's loss of its innovation edge, saying, "About 10 years ago, EL lost its innovation edge relying too heavily on suppliers." Despite these challenges, some users believe the current valuation presents a buying opportunity, with one stating, "With the current valuation, it's an absolute bargain." Discussions also touched on the company's competitive position, with users expressing hope that new leadership might bring necessary changes.
As of 14:22 on December 3, 2024, Estee Lauder's stock is trading at $77.32, reflecting a 1.76% increase from the previous close.