Estee Lauder Companies (EL) is one of the leading players in the global cosmetics space and commands a strong portfolio of well-established brands. The company is currently undertaking initiatives to reduce overheads and optimize inventory levels, which augur well for future operating performance.
Furthermore, Estee Lauder has a consistent track record of returning cash to shareholders in the form regular dividend payments. Our long-term recommendation on Estee Lauder is Outperform as we anticipate it to perform well above the broader market.
However, intense competition from established as well as regional and local players in its markets may limit the above-market performance of the company.Zacks Investment Research
