The Chaikin Power Gauge RatingTM for this The Estee Lauder Companies Inc. $EL stock report is very bearish due to very poor financial metrics, very bearish price/volume activity and negative expert opinions. The rating also reflects strong earnings performance. EL’s financial metrics are very poor due to a high price to book value ratio and high price to sales ratio.
Financial Metrics Rating – Very Bearish
EL’s financial metrics are very poor. The company may be overvalued and has relatively low revenue per share. The rank is based on a high price to book value ratio, high return on equity, high price to sales ratio and relatively low cash flow.
Earnings Performance Rating – Bullish
EL’s earnings performance has been strong. The company has a stable 5 year earnings trend and has a history of strong earnings growth. The rank is based on high earnings growth over the past 3-5 years, an upward trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Very Bearish
Price and volume activity for EL is very bearish. EL has a declining price trend and is experiencing sustained selling. The rank for EL is based on negative Chaikin money flow, a negative Chaikin price trend, a negative Chaikin price trend ROC and an increasing volume trend.
Expert Opinions – Bearish
Expert opinions about EL are negative. Insiders are not net buyers of EL’s stock and analysts’ opinions on EL have been more negative recently. The rank for EL is based on analysts revising earnings estimates upward, a low short interest ratio, insiders not purchasing significant amounts of stock, pessimistic analyst opinions and relative weakness of the stock versus the Soaps-Cosmetics industry group.