Trend Report of Estee Lauder Companys stock

Document Type:Thesis

Subject Area:Engineering

Document 1

In the same year, the company managed to pay dividends of $90 million and had capital spending of $230. $159million was recorded as retained earnings. Lauder Company is growing steadily and its sales are increasing since its debt to capital ratio is lower than its rival company Avon by 30%. The company is expecting more gains from Europe and Asia as it has been producing low priced brands. The company’s aim is to attract younger ladies since they are the main market in the beauty and cosmetics industry. Fragrance products are in form of lotions, soaps, powders, and creams. Makeup products are meant for nails, lips, face, and eyes. They include lipsticks, nail polish and facial foundations (Barker. R, 2005). The company’s products are sold through a distribution channel until it reaches to the final customer.

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4% suggesting that the volatility rate of stock is low. This shows that the value of the stock increases steadily over a period of time, the value of the stock is not fluctuating. The relative price of stock in the month of February 2018 has increased by 0. The volume of sales is about 0. 02 times the volume of trading of 324 shares. as at 5th February 2018, and 26203 shares were sold at an average price of $133. The company’s debt to equity ratio as at 2nd February 2018 was 0. 74, the quick ratio was 1. 33 and the quick ratio was 1. The company’s earnings per share were $1. The company’s shares are owned by vice president 7583 shares worth $10115272. Park financial bank owns 1135 shares worth $123000. Crest point Capital management owns shares worth$204,000.

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Hedge funds own 54. 03% of the company’s shares. Morgan Stanley has raised its price target from $139 to $147. Openheimer Holdings Inc. has raised its price target from $130 to $140. This analysis shows the uptrend in the company’s stock in the year 2018. The shares in the makeup and skin care company increased when the company launched new brands including Clinique and MAC. The strategies used by to enhance its survival include launching new products, reducing advertising costs and reducing overhead costs this helps in reducing company’s expenses. The company has outlined cost Improvement initiatives will increase the company’s operating profit in the long run. Development of core brands that attract more customers and more appealing to the customers and having proper segments on the makeup categories that have will define product lines can help in improving the company’s survival and success in the long run.

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The company is focusing on introducing travel retail that will help in marketing its products since passengers traveling double daily this will increase the customer base and the overall growth in sales of the prestige beauty products. This will increase the company’s sales by 20%. Becca and Too faced increased company’s sales by 2% A graph representing trend of stock Estee Lauder Stock Price for the Year 2017/2018 The graph shows a strong uptrend in the company’s stock. The graph is generated by checking factors such as percentages changes, new highs and lows and price changes. The company’s stock price is increasing steadily. In August 2017 the stock price was $105 but currently is trading at $140 February 2018. The price change of stock is increasing steadily at a lower rate each month this builds confidence in the shareholders since the stock proofs to be to be giving positive returns in the long run.

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31 Volatility 20. 54 The analysis above shows that the volatility rate of stock is low and thus less risky. Beta is also low this shows the stock will give positive returns in the year 2018. The challenge faced by the company is that the new brands that require a lot of investment and prestige have a short lifespan and retail partnership. Although the company has diversified the distribution channels and invested more in the departmental stores and retail partnerships it still poses a challenge to the company since it has to sell its products through the departmental stores. The shares price targets are increasing this show the company’s ability to increase its profits in the long run and potential increase in sales. The company shows a steady growth and is likely to grow in future.

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It has well-defined strategies that support its growth. The company’s stock is likely to trade well over the next years since its accumulated volume is $137. The stock tends to be less risky since its average daily volatility rate is 1. Estee Lauder Companies Inc. (2017, November 2). Stocks To Watch: Estee Lauder Sees RS Rating Rise To 92.  Investors Business Daily. p. (THE).  Mergent's Handbook of Common Stocks (Wiley), 472. https://advance. lexis. com/document/?pdmfid=1516831&crid=0f374e70-9047-46d6-a83f-4650e6ef27b6&pddocfullpath=%2Fshared%2Fdocument%2Fnews%2Furn%3AcontentItem%3A5RMV-KHR1-F03R-N3Y2-00000-00&pddocid=urn%3AcontentItem%3A5RMV-KHR1-F03R-N3Y2-00000-00&pdcontentcomponentid=299488&pdteaserkey=sr6&pditab=allpods&ecomp=Ly_k&earg=sr6&prid=fb17281a-65a0-422f-bd0f-87b8a5cd9eb8 https://advance.

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