A Seasonal Gift for Investors?
As the holiday season approaches, many of us are on the hunt for the perfect gift for loved ones. But what about a gift for ourselves? If you’re an investor, you might want to consider Estée Lauder’s stock as a potential present.
A Bullish Outlook
One analyst, DA Davidson’s Linda Bolton Weiser, is extremely optimistic about the company’s prospects. She recently reiterated her buy recommendation on the stock, with a price target of $81 per share. But what’s driving her enthusiasm?
The China Factor
Weiser’s latest research note focuses on Estée Lauder’s sales to China, a market that’s currently struggling with low economic growth and a consumer pull-back. While this might seem like a concern, Weiser believes the company’s exposure to China – roughly 30% of sales – will continue to be a challenge in the short term. In fact, she predicts a 15% to 16% year-over-year drop in sales in the current quarter.
A New Era Ahead
However, there are reasons to be hopeful. With the arrival of new CEO Stéphane de La Faverie on January 1, the company is poised for a fresh start. Weiser thinks de La Faverie’s initial actions and remarks could drive the stock price upward.
A Sleeper Stock?
While Estée Lauder might not be the most innovative company in its field, its share price is currently low enough to make it an attractive buy. With the right leadership, this could be a sleeper stock waiting to be awakened.
Before You Buy…
Before investing in Estée Lauder, consider the bigger picture. The Motley Fool Stock Advisor team has identified 10 stocks that they believe have monster return potential. While Estée Lauder didn’t make the cut, these stocks could be worth exploring. With a proven track record of success, Stock Advisor provides investors with a blueprint for success, including guidance on building a portfolio and regular updates from analysts.
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