The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes, and powders, as well as compacts, brushes, and other makeup tools. The company also provides fragrance products in various forms comprising eau de parfum sprays and colognes, as well as lotions, powders, creams, candles, and soaps; and hair care products that include shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. It offers its products under the Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, TOM FORD, Too Faced, Dr.Jart+, and The Ordinary brands. The company sells its products through department stores, specialty-multi retailers, upscale perfumeries and pharmacies, and salons and spas; freestanding stores; its own and authorized retailer websites; third-party online malls; stores in airports; and duty-free locations. The Estée Lauder Companies Inc. was founded in 1946 and is headquartered in New York, New York.

Estee Lauder Companies, Inc. (The)

Helen of Troy Limited (HELE) is likely to register a decline in both top and bottom lines when it reports third-quarter fiscal 2026 earnings on Jan. 8. The Zacks Consensus Estimate for quarterly revenues is pegged at $505.4 million, implying a 4.8% decrease from the prior-year quarter’s reported figure.
The consensus estimate for HELE’s quarterly earnings has moved down 4 cents in the past 30 days to $1.75 per share, indicating a 36% decline from the figure reported in the year-ago quarter. The company delivered a trailing four-quarter negative earnings surprise of almost 11%, on average.
Helen of Troy Limited Price, Consensus and EPS Surprise
Things to Know About HELE’s Q3 Earnings
Helen of Troy has been facing pressure as consumer spending softness has been persisting across discretionary categories. Demand has remained weak as consumers have been trading down and prioritizing essential purchases, which has been limiting unit volumes. Retailers have been maintaining cautious inventory positions, leading to lower replenishment orders. In addition, tariff-related pullbacks in direct import orders have continued to disrupt sales patterns, weighing on overall reported revenues. Our model expects a 12.5% drop in organic volumes for the fiscal third quarter.
Helen of Troy has also been grappling with rising SG&A expenses. In the fiscal second quarter, the rise in the consolidated SG&A ratio was mainly due to increased outbound freight costs, elevated share-based compensation expense and unfavorable operating leverage. The persistence of any of these factors is a concern. We expect a 180-basis-point expansion in adjusted SG&A (as a percentage of sales) to 34.1% in the fiscal third quarter.
Apart from this, tariff-related product costs have continued to pressure the cost of goods sold, while elevated operating and logistics expenses have been weighing on margins. In addition, growth-related investments and unfavorable operating leverage stemming from lower revenue levels are likely to have contributed to pressure on adjusted EPS during the quarter.
At the same time, the strength of the company’s Leadership Brands has remained a key support amid broader challenges. HELE’s focus on operational discipline and portfolio optimization has been helping stabilize performance. Its data-driven execution has been reinforcing brand fundamentals, while international distribution optimization has been improving efficiency. In addition, the global restructuring initiative, Project Pegasus, has been delivering cost savings. These factors are likely to have offered some respite in the to-be-reported quarter.
Earnings Whispers for HELE Stock
Our proven model does not conclusively predict an earnings beat for Helen of Troy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Helen of Troy currently has a Zacks Rank #3 and an Earnings ESP of -6.57%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some Stocks With a Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The Estee Lauder Companies Inc. (EL) currently has an Earnings ESP of +3.26% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Estee Lauder’s upcoming quarter’s revenues is pegged at $4.23 billion, which indicates an increase of 5.5% from the prior-year quarter. The Zacks Consensus Estimate for quarterly earnings per share is pegged at 82 cents, implying a 32.3% increase from the year-ago period. EL delivered a trailing four-quarter earnings surprise of 82.6%, on average.
The Hershey Company (HSY) currently has an Earnings ESP of +2.01% and a Zacks Rank of 3. The consensus estimate for Hershey’s quarterly revenues is pinned at $2.98 billion, which calls for 3.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $1.40, which implies a 48% decrease year over year. HSY delivered a trailing four-quarter earnings surprise of nearly 15%, on average.
BJ's Wholesale Club Holdings, Inc. (BJ) currently has an Earnings ESP of +0.84% and a Zacks Rank of 3. The Zacks Consensus Estimate for BJ's Wholesale Club’s upcoming quarter’s revenues is pegged at $5.53 billion, which implies a 4.8% increase from the prior-year quarter.
The Zacks Consensus Estimate for BJ's Wholesale Club’s quarterly earnings per share is pegged at 92 cents, indicating a 1.1% fall from the year-ago period figure. BJ delivered a trailing four-quarter earnings surprise of 10.3%, on average.
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Helen of Troy Q3 Earnings on Deck: Key Factors You Should Understand

Monster Beverage Corporation MNST is sustaining its strong growth momentum by tightly aligning innovation, pricing discipline and high-impact marketing into one cohesive strategy. As the energy drink category continues to expand globally, the company is not relying on a single growth lever. Instead, it is broadening its product portfolio with new flavors, formats and zero-sugar options while carefully managing pricing to protect margins. This balanced approach allows Monster Beverage to drive top-line growth without sacrificing profitability, even in an environment marked by rising input costs and competitive pressure.
Innovation remains at the core of Monster Beverage’s strategy. The company continues to refresh its lineup through successful platforms like the Ultra and Juice Monster families while introducing new SKUs that appeal to evolving consumer tastes and health preferences. Limited-time offerings and athlete-backed products, such as zero-sugar extensions, help keep the brand culturally relevant and drive repeat purchases. These launches are supported by data-driven merchandising, improved cooler placements and retail execution, ensuring that innovation translates into visible shelf presence and sustained sales growth.
At the same time, Monster Beverage is pairing innovation with smart pricing and powerful marketing. Pricing adjustments, including reduced promotional allowances, are being implemented in a way that reflects the brand’s strong value proposition and minimizes volume risk. Marketing efforts, from global sports sponsorships to viral digital campaigns, continue to reinforce Monster Beverage’s lifestyle appeal and deepen consumer engagement. Together, innovation, pricing discipline and marketing scale are enabling the company to maintain momentum and strengthen its competitive position as it moves into 2026.
MNST’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #1 (Strong Buy) company have appreciated 47.3% in the past year, outperforming the Zacks Beverages - Soft Drinks industry’s rise of 8.7% and the broader Consumer Staples sector’s decline of 0.4%.
MNST Stock's One-Year Performance
Image Source: Zacks Investment Research
Is MNST Stock a Value Play?
Monster Beverage shares are currently trading at a forward 12-month price-to-earnings (P/E) multiple of 34.4X, significantly above the industry’s average of 18.14X.
MNST P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to Consider
The Vita Coco Company, Inc. COCO develops, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco's current fiscal-year sales and earnings implies growth of 18% and 15%, respectively, from the year-ago reported figures. Vita Coco delivered a trailing four-quarter earnings surprise of 30.4%, on average.
The Estee Lauder Companies Inc. EL manufactures, markets and sells skin care, makeup, fragrance and hair care products worldwide. It currently sports a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Estee Lauder’s current fiscal-year sales and earnings calls for growth of 4.5% and 42.4%, respectively, from the year-ago reported numbers. EL delivered a trailing four-quarter average earnings surprise of 82.6%.
United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for United Natural’s current fiscal-year sales and earnings implies growth of 9.7% and 22.8%, respectively, from the year-ago reported figures. UNFI delivered a trailing four-quarter earnings surprise of 5.5%, on average.
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Is Monster Beverage Driving Momentum Through Innovation and Marketing?

Coty Inc.’s (COTY) first-quarter fiscal 2026 performance highlights the growing strategic relevance of e-commerce, even as it navigates broader top-line pressure from trade destocking. In the fiscal first quarter, Coty reported mid-single-digit e-commerce sell-out growth across both Prestige and Consumer Beauty, underscoring resilient consumer demand online.
E-commerce now accounts for approximately 20% of Coty’s total sales, with penetration increasing during the quarter. This growth reflects more than channel mix benefits, it signals improved execution. Coty has embedded its digital and e-commerce teams directly within local markets and brand organizations, enabling faster decision-making and tighter omnichannel coordination. This structural shift allows brands to respond more dynamically to local demand patterns, promotions and product launches.
Partnerships remain a critical lever. Coty continues to build on its long-standing collaboration with Amazon, adding Marc Jacobs to Amazon’s Premium Beauty Marketplace during the quarter. This move expands Coty’s reach in prestige beauty online while maintaining brand positioning and control in a curated digital environment.
Importantly, e-commerce momentum is also supported by early-stage digital innovation. Coty is accelerating AI adoption across content creation, predictive analytics and virtual try-on tools, aiming to enhance the online shopper experience while improving return on digital media spend. While still in ramp-up mode, these initiatives point to e-commerce becoming not just a growth channel, but a testing ground for scalable, data-driven execution.
Overall, Coty’s mid-single-digit e-commerce growth in the fiscal first quarter highlights the channel’s growing role in consumer engagement, even as it manages near-term retail disruptions in a changing beauty market.
Shares of this Zacks Rank #3 (Hold) company have lost 8.4% in the past month against the broader Consumer Staples sector’s 0.1% growth. COTY has also underperformed the industry and the S&P 500 index’s growth of 10.6% and 1.7%, respectively, during the same period.
COTY Stock's Past Month Performance
Image Source: Zacks Investment Research
Is COTY a Value Play Stock?
Coty currently trades at a forward 12-month P/E ratio of 6.74, below the industry and the sector’s average of 28.98 and 16.39, respectively.
COTY P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to Consider
The Estee Lauder Companies Inc. (EL) manufactures, markets and sells skin care, makeup, fragrance and hair care products worldwide. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Estee Lauder’s current fiscal-year sales and earnings calls for growth of 4.5% and 42.4%, respectively, from the year-ago reported numbers. EL delivered a trailing four-quarter average earnings surprise of 82.6%.
Five Below, Inc. (FIVE) operates as a specialty value retailer in the United States and currently flaunts a Zacks Rank #1. FIVE delivered a trailing four-quarter earnings surprise of 62.1%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 19.6% and 15.9%, respectively, from the year-ago reported numbers.
Ulta Beauty, Inc. (ULTA) operates as a specialty beauty retailer in the United States. It currently holds a Zacks Rank #2 (Buy). ULTA delivered a trailing four-quarter earnings surprise of 15.7%, on average.
The Zacks Consensus Estimate for Ulta Beauty’s current fiscal-year sales and earnings calls for growth of 8.7% and 0.7%, respectively, from the year-ago reported numbers.
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Coty E-Commerce Grows Mid-Single Digits: Is Digital the Backbone?

For Immediate Release
Chicago, IL – December 29, 2025 – Today, Zacks Equity Research discusses The Estee Lauder Companies Inc. EL, Coty Inc. COTY, Helen of Troy Ltd. HELE and European Wax Center, Inc. EWCZ.
Industry: Cosmetics
Link: https://www.zacks.com/commentary/2809016/4-cosmetics-stocks-to-watch-as-the-market-resets-for-2026
Companies within the Zacks Cosmetics industry are operating in an increasingly challenging macroeconomic environment, marked by softer consumer spending, uneven retail restocking patterns and persistent cost pressures. Rising prices for packaging, ingredients, logistics and promotional activities are squeezing margins, while trade tensions and potential supply chain disruptions continue to add uncertainty to the operating landscape. These factors are reshaping demand trends and intensifying competition across the beauty market.
Even as near-term pressures persist, long-term industry fundamentals remain supported by innovation and digital transformation. Beauty companies are investing in product innovation, clean and science-backed formulations, and enhanced e-commerce capabilities to strengthen consumer engagement and support growth. Against this backdrop, The Estee Lauder Companies Inc., Coty Inc., Helen of Troy Ltd. and European Wax Center, Inc. stand out as cosmetics stocks to watch as the market resets for 2026, given their focus on brand strength, digital initiatives and operational execution.
About the Industry
The Zacks Cosmetics industry includes companies that provide beauty and personal care products. Players in the industry manufacture, distribute, sell and market skincare, fragrance, makeup and hair care products. Many firms in the market sell products via sales representatives, whereas some do the same through retailers, independent and chain drug stores and pharmacies, upscale perfumeries, department stores and beauty salons.
These companies also operate through retailer websites, third-party distributors and in-flight and duty-free shops. Some products offered by industry participants include moisturizers, serums, toners and cleansers under skincare; perfume sprays, candles and soaps under fragrance; lipsticks, mascaras, powders, eye shadows, foundation and nail polishes under makeup; and shampoos, conditioners and hair color products under hair care.
Trends Shaping the Future of the Cosmetics Industry
Challenging Economic Conditions: The cosmetics industry is navigating mounting challenges amid an increasingly uncertain economic environment. Ongoing trade tensions, softer consumer spending and uneven retail restocking cycles are reshaping the beauty market. As living costs rise and household savings come under pressure, consumers are prioritizing essential purchases and scaling back discretionary spending, including cosmetics. This shift in behavior is weighing on demand across many beauty brands.
At the same time, operational costs are rising due to higher prices for packaging materials, ingredients, logistics and promotional activities. These cost pressures are squeezing profit margins and intensifying competition within the industry. Moreover, potential changes in trade policies or global supply chain disruptions could further elevate costs and influence product pricing, adding strain for cosmetic companies operating in a volatile and competitive landscape.
International Risk Factors: Cosmetic companies with global operations face international risk factors, including unfavorable foreign currency movements that can impact revenues and profitability. Geopolitical tensions and political instability may disrupt market access, reduce supply chain efficiency and affect operational continuity. In addition, trade conflicts, tariffs, sanctions and other regulatory restrictions may weigh on industry performance.
Innovation and Digitalization Driving Growth: Innovation and digitization remain key growth drivers in the beauty and skincare market. Consumers are increasingly seeking differentiated products that blend advanced technology with science-backed formulations, prompting cosmetic companies to continuously innovate and expand their offerings.
Growing demand for organic and clean beauty products is further supporting market growth. Enhancing e-commerce capabilities is a major focus, with tools such as virtual try-ons, streamlined digital payments and data-driven online marketing gaining traction. In addition, many beauty brands are pursuing strategic acquisitions and partnerships to broaden product portfolios and remain competitive in this evolving industry.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Cosmetics industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #177, which places it in the bottom 27% of more than 243 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries leads to a negative aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Since the beginning of October 2025, the industry’s consensus estimate for current financial year earnings has decreased 6.1%.
Before we present a few stocks that you may want to consider for your portfolio, let’s look at the industry’s recent stock market performance and valuation picture.
Industry vs. Broader Market
The Zacks Cosmetics industry has underperformed the S&P 500 composite but outperformed the broader Zacks Consumer Staples sector over the past year.
The industry has returned 10% over this period, underperforming the S&P 500’s growth of 18.3%. Meanwhile, the broader sector has appreciated 2.5%.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), which is commonly used to value consumer staples stocks, the industry is currently trading at 28.99X compared with the S&P 500’s 23.45X and the sector’s 16.42X.
In the past five years, the industry has traded as high as 41.34X and as low as 20.22X, with the median being 31.02X.
4 Cosmetic Stocks Worth Considering
The Estee Lauder Companies: This Zacks Rank #1 (Strong Buy) company manufactures and markets skincare, makeup, fragrance and hair care products. The Estee Lauder Companies is strategically focused on restoring profitability and driving long-term growth through its expanded Profit Recovery and Growth Plan.
The transformative Beauty Reimagined vision aims to position the company as a leading consumer-centric prestige beauty brand by enhancing innovation, expanding in high-growth markets and digital channels and streamlining operations for agility. With a strong online business, increased AI integration and successful brand launches, The Estee Lauder Companies is well-positioned for growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EL’s current fiscal year earnings per share (EPS) has moved up 0.5% in the past 30 days to $2.15. The stock has gained 39.7% in the past six months.
Coty: A leading manufacturer, marketer and distributor of beauty products, Coty carries a Zacks Rank #3 (Hold) at present and is leveraging its brand equity, accelerating digital transformation and implementing cost-optimization initiatives to enhance overall performance. The company’s growth strategy focuses on stabilizing its Consumer Beauty segment, expanding its Prestige fragrance and makeup portfolio, building a stronger skincare presence, and enhancing its e-commerce and Direct-to-Consumer channels.
Fragrances remain a key revenue driver, supported by resilient consumer demand and ongoing product innovation. In addition, Coty’s “All In to Win” cost-saving program continues to support margin expansion and operational efficiency.
The Zacks Consensus Estimate for COTY’s current fiscal year EPS has remained unchanged in the past 30 days at 42 cents. Coty’s shares have lost 34% in the past six months.
Helen of Troy: This Zacks Rank #3 company provides consumer products across the Beauty, Housewares, and Health & Home segments and is pursuing sustainable growth through a focused strategy centered on its high-performing Leadership Brands. These premium, higher-margin brands are supporting market share gains through strategic investments in innovation, marketing, and expanded distribution.
The company’s long-term strategic plan, Elevate for Growth, focuses on strengthening brand building and enhancing operational scale. Helen of Troy is also advancing Project Pegasus, a global restructuring initiative designed to improve operating margins, streamline operations, and enable reinvestment in brand growth.
The Zacks Consensus Estimate for Helen of Troy’s current fiscal year EPS has moved down 1.2% in the past 30 days to $4.05. The stock has lost 26% in the past six months.
European Wax Center: The largest franchisor and operator of out-of-home waxing services in the United States, EWCZ holds a Zacks Rank #3 at present. Supported by a highly committed network of franchise partners, the company is positioned for long-term expansion. European Wax Center is focused on increasing guest acquisition, boosting average ticket through customer retention and reactivation, and enhancing overall operational productivity.
By leveraging innovative marketing initiatives and advanced technology solutions, the brand aims to attract new clients while strengthening engagement with existing guests. These efforts support stronger customer relationships, improved brand loyalty and sustainable long-term growth.
The Zacks Consensus Estimate for European Wax’s current fiscal year EPS has moved down 4.7% in the past 30 days to 61 cents. EWCZ stock has plunged 33.6% in the past six months.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights Estee Lauder, Coty, Helen of Troy and European Wax Center

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, Dec. 26th:
Expeditors International of Washington, Inc. EXPD: This logistics services company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.9% over the last 60 days.
Expeditors International of Washington, Inc. Price and Consensus
Expeditors International of Washington, Inc. price-consensus-chart | Expeditors International of Washington, Inc. Quote
Expeditors International of Washington’s shares gained 24.2% over the last three months compared with the S&P 500’s decline of 4.4%. The company possesses a Momentum Score of B.
Expeditors International of Washington, Inc. Price
Innovative Aerosystems, Inc. ISSC: This avionics solutions provider has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.3% over the last 60 days.
Innovative Solutions and Support, Inc. Price and Consensus
Innovative Solutions and Support, Inc. price-consensus-chart | Innovative Solutions and Support, Inc. Quote
Innovative Aerosystems’ shares gained 60.4% over the past three months compared with the S&P 500’s decline of 4.4%. The company possesses a Momentum Score of A.
Innovative Solutions and Support, Inc. Price
The Estée Lauder Companies Inc. EL: This cosmetics company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.9% over the last 60 days.
The Estee Lauder Companies Inc. Price and Consensus
The Estée Lauder’s shares gained 21.0% over the last three months compared with the S&P 500’s decline of 4.4%. The company possesses a Momentum Score of B.
The Estee Lauder Companies Inc. Price
See thefull list of top ranked stocks here
Learn more about theMomentum score and how it is calculated here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Best Momentum Stocks to Buy for Dec. 26

Companies within the Zacks Cosmetics industry are operating in an increasingly challenging macroeconomic environment, marked by softer consumer spending, uneven retail restocking patterns and persistent cost pressures. Rising prices for packaging, ingredients, logistics and promotional activities are squeezing margins, while trade tensions and potential supply chain disruptions continue to add uncertainty to the operating landscape. These factors are reshaping demand trends and intensifying competition across the beauty market.
Even as near-term pressures persist, long-term industry fundamentals remain supported by innovation and digital transformation. Beauty companies are investing in product innovation, clean and science-backed formulations, and enhanced e-commerce capabilities to strengthen consumer engagement and support growth. Against this backdrop, The Estee Lauder Companies Inc. (EL), Coty Inc. (COTY), Helen of Troy Limited (HELE) and European Wax Center, Inc. (EWCZ) stand out as cosmetics stocks to watch as the market resets for 2026, given their focus on brand strength, digital initiatives and operational execution.
About the Industry
The Zacks Cosmetics industry includes companies that provide beauty and personal care products. Players in the industry manufacture, distribute, sell and market skincare, fragrance, makeup and hair care products. Many firms in the market sell products via sales representatives, whereas some do the same through retailers, independent and chain drug stores and pharmacies, upscale perfumeries, department stores and beauty salons. These companies also operate through retailer websites, third-party distributors and in-flight and duty-free shops. Some products offered by industry participants include moisturizers, serums, toners and cleansers under skincare; perfume sprays, candles and soaps under fragrance; lipsticks, mascaras, powders, eye shadows, foundation and nail polishes under makeup; and shampoos, conditioners and hair color products under hair care.
Trends Shaping the Future of the Cosmetics Industry
Challenging Economic Conditions: The cosmetics industry is navigating mounting challenges amid an increasingly uncertain economic environment. Ongoing trade tensions, softer consumer spending and uneven retail restocking cycles are reshaping the beauty market. As living costs rise and household savings come under pressure, consumers are prioritizing essential purchases and scaling back discretionary spending, including cosmetics. This shift in behavior is weighing on demand across many beauty brands. At the same time, operational costs are rising due to higher prices for packaging materials, ingredients, logistics and promotional activities. These cost pressures are squeezing profit margins and intensifying competition within the industry. Moreover, potential changes in trade policies or global supply chain disruptions could further elevate costs and influence product pricing, adding strain for cosmetic companies operating in a volatile and competitive landscape.
International Risk Factors: Cosmetic companies with global operations face international risk factors, including unfavorable foreign currency movements that can impact revenues and profitability. Geopolitical tensions and political instability may disrupt market access, reduce supply chain efficiency and affect operational continuity. In addition, trade conflicts, tariffs, sanctions and other regulatory restrictions may weigh on industry performance.
Innovation and Digitalization Driving Growth: Innovation and digitization remain key growth drivers in the beauty and skincare market. Consumers are increasingly seeking differentiated products that blend advanced technology with science-backed formulations, prompting cosmetic companies to continuously innovate and expand their offerings. Growing demand for organic and clean beauty products is further supporting market growth. Enhancing e-commerce capabilities is a major focus, with tools such as virtual try-ons, streamlined digital payments and data-driven online marketing gaining traction. In addition, many beauty brands are pursuing strategic acquisitions and partnerships to broaden product portfolios and remain competitive in this evolving industry.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Cosmetics industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #177, which places it in the bottom 27% of more than 243 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries leads to a negative aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Since the beginning of October 2025, the industry’s consensus estimate for current financial year earnings has decreased 6.1%.
Before we present a few stocks that you may want to consider for your portfolio, let’s look at the industry’s recent stock market performance and valuation picture.
Industry vs. Broader Market
The Zacks Cosmetics industry has underperformed the S&P 500 composite but outperformed the broader Zacks Consumer Staples sector over the past year.
The industry has returned 10% over this period, underperforming the S&P 500’s growth of 18.3%. Meanwhile, the broader sector has appreciated 2.5%.
One-Year Price Performance
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), which is commonly used to value consumer staples stocks, the industry is currently trading at 28.99X compared with the S&P 500’s 23.45X and the sector’s 16.42X.
In the past five years, the industry has traded as high as 41.34X and as low as 20.22X, with the median being 31.02X, as the chart below shows.
Price-to-Earnings Ratio (Past Five Years)
4 Cosmetic Stocks Worth Considering
The Estee Lauder Companies: This Zacks Rank #1 (Strong Buy) company manufactures and markets skincare, makeup, fragrance and hair care products. The Estee Lauder Companies is strategically focused on restoring profitability and driving long-term growth through its expanded Profit Recovery and Growth Plan. The transformative Beauty Reimagined vision aims to position the company as a leading consumer-centric prestige beauty brand by enhancing innovation, expanding in high-growth markets and digital channels and streamlining operations for agility. With a strong online business, increased AI integration and successful brand launches, The Estee Lauder Companies is well-positioned for growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EL’s current fiscal year earnings per share (EPS) has moved up 0.5% in the past 30 days to $2.15. The stock has gained 39.7% in the past six months.
Price and Consensus: EL
Coty: A leading manufacturer, marketer and distributor of beauty products, Coty carries a Zacks Rank #3 (Hold) at present and is leveraging its brand equity, accelerating digital transformation and implementing cost-optimization initiatives to enhance overall performance. The company’s growth strategy focuses on stabilizing its Consumer Beauty segment, expanding its Prestige fragrance and makeup portfolio, building a stronger skincare presence, and enhancing its e-commerce and Direct-to-Consumer channels. Fragrances remain a key revenue driver, supported by resilient consumer demand and ongoing product innovation. In addition, Coty’s “All In to Win” cost-saving program continues to support margin expansion and operational efficiency.
The Zacks Consensus Estimate for COTY’s current fiscal year EPS has remained unchanged in the past 30 days at 42 cents. Coty’s shares have lost 34% in the past six months.
Price and Consensus: COTY
Helen of Troy: This Zacks Rank #3 company provides consumer products across the Beauty, Housewares, and Health & Home segments and is pursuing sustainable growth through a focused strategy centered on its high-performing Leadership Brands. These premium, higher-margin brands are supporting market share gains through strategic investments in innovation, marketing, and expanded distribution. The company’s long-term strategic plan, Elevate for Growth, focuses on strengthening brand building and enhancing operational scale. Helen of Troy is also advancing Project Pegasus, a global restructuring initiative designed to improve operating margins, streamline operations, and enable reinvestment in brand growth.
The Zacks Consensus Estimate for Helen of Troy’s current fiscal year EPS has moved down 1.2% in the past 30 days to $4.05. The stock has lost 26% in the past six months.
Price and Consensus: HELE
European Wax Center: The largest franchisor and operator of out-of-home waxing services in the United States, EWCZ holds a Zacks Rank #3 at present. Supported by a highly committed network of franchise partners, the company is positioned for long-term expansion. European Wax Center is focused on increasing guest acquisition, boosting average ticket through customer retention and reactivation, and enhancing overall operational productivity. By leveraging innovative marketing initiatives and advanced technology solutions, the brand aims to attract new clients while strengthening engagement with existing guests. These efforts support stronger customer relationships, improved brand loyalty and sustainable long-term growth.
The Zacks Consensus Estimate for European Wax’s current fiscal year EPS has moved down 4.7% in the past 30 days to 61 cents. EWCZ stock has plunged 33.6% in the past six months.
Price and Consensus: EWCZ
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
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Coty (COTY) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

4 Cosmetics Stocks to Watch as the Market Resets for 2026

e.l.f. Beauty, Inc. ELF and The Estee Lauder Companies Inc. EL are two influential players in global beauty, operating at different ends of the market while competing across several overlapping categories. The comparison highlights the contrast between a fast-growing mass-market disruptor and a large prestige beauty company navigating a cyclical recovery.
e.l.f. Beauty is a digitally driven cosmetics and skincare company focused on affordable pricing, rapid product launches and strong social media engagement. Its brand portfolio includes e.l.f. Cosmetics, e.l.f. SKIN, Naturium and rhode, with strength in U.S. mass retail, e-commerce and growing international markets. Estée Lauder, by contrast, is a global prestige beauty leader with a diversified portfolio across skincare, makeup, fragrance and hair care, including brands such as Estée Lauder, La Mer, M·A·C, Clinique, The Ordinary and Jo Malone, supported by a broad global distribution network and a sizable travel retail presence.
With a market capitalization of roughly $4.76 billion, e.l.f. Beauty continues to gain market share through value-driven innovation and digital momentum. Estée Lauder, with a market capitalization of $38.7 billion, is focused on stabilizing sales and rebuilding margins under its Beauty Reimagined strategy. The face-off is timely as both companies adjust to shifting consumer demand, evolving value preferences and intensifying competition across the global beauty market.
The Case for e.l.f. Beauty
e.l.f. Beauty’s strength lies in its differentiated value-driven model, which combines affordable pricing with rapid product innovation and strong brand relevance. The company has consistently gained share in mass cosmetics and skincare by responding quickly to consumer trends and delivering quality products at accessible price points. This has enabled e.l.f. Beauty to outperform the broader beauty category, even as parts of the industry experience demand normalization.
A key competitive advantage is ELF’s digitally native marketing approach. The company relies heavily on social media engagement, influencer-led campaigns and data-driven insights to drive product discovery while maintaining relatively low traditional advertising spend. This supports efficient customer acquisition and high engagement, with e-commerce complementing strong relationships with mass retailers. The addition of Naturium and rhode further expands e.l.f. Beauty’s presence across skincare and younger consumer segments, strengthening its long-term growth platform.
Operational execution has supported scalability and profitability. Management continues to benefit from supply-chain optimization, scale efficiencies and disciplined pricing architecture, which have helped offset input cost pressures. At the same time, ELF is reinvesting in innovation, international expansion and digital capabilities to support sustained growth while maintaining an asset-light operating model.
That said, execution risk remains related to the sustainability of the company’s high product velocity and marketing-driven growth model. Continued success depends on accurately forecasting demand, maintaining rapid innovation cycles and managing inventory effectively across an expanding global footprint, particularly given ELF’s reliance on third-party manufacturing.
Apart from this, scaling newer brands such as Naturium and rhode introduces complexity, requiring careful balance between growth, brand discipline and operational focus. Nevertheless, e.l.f. Beauty’s strong track record of execution and adaptability positions the company well to navigate these challenges and continue gaining share in a dynamic global beauty market.
The Case for Estee Lauder
Estee Lauder has been benefiting from the strength of its global prestige beauty portfolio, which spans skincare, makeup, fragrance and hair care across a wide range of price points and geographies. Flagship brands such as Estee Lauder, La Mer, Clinique, M·A·C, The Ordinary and Jo Malone give the company broad category exposure and strong brand equity, supporting long-term demand despite near-term industry volatility. Skincare and fragrance remain the company’s largest profit drivers, with fragrance continuing to outperform the broader beauty category.
A key pillar of Estee Lauder’s strategy is its Beauty Reimagined transformation plan, which is focused on reigniting organic sales growth, expanding margins and simplifying operations. Management has emphasized sharper brand prioritization, fewer but more impactful product launches and improved marketing effectiveness. At the same time, the company is restructuring its cost base through supply-chain optimization, organizational streamlining and disciplined spending, which is intended to support margin recovery as demand normalizes.
Geographically, Estee Lauder retains significant long-term exposure to key growth markets, including Asia and travel retail. While demand in China and travel retail has been uneven, the company continues to invest in local innovation, consumer engagement and channel mix to position itself for recovery. E-commerce and owned retail remain important levers, complementing department stores and specialty retail partners.
However, EL’s near-term performance continues to be pressured by softer demand in certain regions, particularly Asia, as well as inventory rebalancing and reduced promotional intensity. The company’s prestige positioning also makes it more sensitive to shifts in discretionary spending, especially as consumers trade down or delay purchases in a cautious macro environment.
That said, Estee Lauder’s scale, brand portfolio and global reach provide a solid foundation for recovery. The successful execution of Beauty Reimagined through tighter cost control, improved innovation discipline and stabilization in key markets could help restore earnings momentum over time.
How Does the Zacks Consensus Estimate Compare for ELF & EL?
The Zacks Consensus Estimate for e.l.f. Beauty’s current fiscal-year sales suggests a year-over-year increase of 19.2%, while the consensus mark for earnings indicates a decrease of 15.9%. The consensus estimate for EPS for the current fiscal year has declined from $2.93 to $2.85 over the past seven days. The consensus mark for the next fiscal-year sales and EPS implies year-over-year growth of 18.1% and 25%, respectively. The consensus mark for EPS has dropped from $3.73 to $3.56 over the past seven days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Estee Lauder’s current fiscal-year sales and EPS implies year-over-year growth of 4.5% and 42.4%, respectively. The consensus estimate for EPS for the current fiscal year has increased from $2.14 to $2.15 over the past 30 days. The consensus mark for the next fiscal-year sales and EPS suggests a year-over-year jump of 3.4% and 36.4%, respectively. The consensus mark for EPS has risen from $2.91 to $2.93 over the past 30 days.
Image Source: Zacks Investment Research
ELF & EL: A Look at Past-Year Stock Performance
Over the past year, shares of e.l.f. Beauty have tumbled 39.1%, whereas Estee Lauder shares have rallied 43.3%. EL outperformed the industry’s growth of 8.6%, while ELF lagged.
Image Source: Zacks Investment Research
ELF vs. EL: Valuation Snapshot
e.l.f. Beauty currently trades at a forward price-to-earnings multiple of 23.71, which is below its median level of 36.44 as well as the industry’s multiple of 28.99. Meanwhile, Estee Lauder carries a forward 12-month P/E of 42.48, higher than its one-year median of 37.72 and the industry. From a valuation perspective, e.l.f. Beauty looks relatively more attractive right now.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
ELF vs. EL: Which Is the Better Bet Now?
While e.l.f. Beauty continues to benefit from strong brand momentum and a value-focused growth model, the current setup appears more favorable for Estee Lauder. As a global prestige beauty leader, EL offers a more diversified business, a broad brand portfolio and exposure to categories that tend to recover well as consumer demand improves. Compared with e.l.f. Beauty’s reliance on continued rapid product launches and marketing execution, Estee Lauder provides greater business stability and recovery potential, making it the more attractive choice at this stage of the cycle.
While ELF holds a Zacks Rank #5 (Strong Sell), EL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ELF vs. EL: Which Beauty Stock Looks More Attractive Now?

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
eGain Corporation EGAN: This customer engagement solutions provider has seen the Zacks Consensus Estimate for its current year earnings increasing 27.8% over the last 60 days.
eGain Corporation Price and Consensus
ACM Research, Inc. ACMR: This semiconductor cleaning equipment provider has seen the Zacks Consensus Estimate for its current year earnings increasing 18.4% over the last 60 days.
ACM Research, Inc. Price and Consensus
Mission Produce, Inc. AVO: This agribusiness company has seen the Zacks Consensus Estimate for its current year earnings increasing 44.8% over the last 60 days.
Mission Produce, Inc. Price and Consensus
BlackBerry Limited BB: This intelligent security software and services provider has seen the Zacks Consensus Estimate for its current year earnings increasing 150% over the last 60 days.
BlackBerry Limited Price and Consensus
NRx Pharmaceuticals, Inc. NRXP: This bio-pharmaceutical company has seen the Zacks Consensus Estimate for its current year earnings increasing 46.2% over the last 60 days.
NRx Pharmaceuticals, Inc. Price and Consensus
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

New Strong Buy Stocks for December 26th

Here are three stocks with buy rank and strong income characteristics for investors to consider today, Dec. 26th:
J&J Snack Foods Corp. JJSF: This food and beverage company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.5% over the last 60 days.
J & J Snack Foods Corp. Price and Consensus
This Zacks Rank #1 company has a dividend yield of 3.5%, compared with the industry average of 0.0%.
J & J Snack Foods Corp. Dividend Yield (TTM)
Expeditors International of Washington, Inc. EXPD: This logistics services company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.9% over the last 60 days.
Expeditors International of Washington, Inc. Price and Consensus
Expeditors International of Washington, Inc. price-consensus-chart | Expeditors International of Washington, Inc. Quote
This Zacks Rank #1 company has a dividend yield of 1.0%, compared with the industry average of 0.0%.
Expeditors International of Washington, Inc. Dividend Yield (TTM)
Expeditors International of Washington, Inc. dividend-yield-ttm | Expeditors International of Washington, Inc. Quote
The Estée Lauder Companies Inc. EL: This cosmetics company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.9% over the last 60 days.
The Estee Lauder Companies Inc. Price and Consensus
This Zacks Rank #1 company has a dividend yield of 1.3%, compared with the industry average of 0.0%.
The Estee Lauder Companies Inc. Dividend Yield (TTM)
See thefull list of top ranked stocks here.
Find more top income stocks withsome of our great premium screens.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Best Income Stocks to Buy for Dec. 26

An updated edition of the Nov. 25, 2025, article.
The U.S. beauty and cosmetics industry continues to hold its ground as a resilient corner of consumer spending. Even in slower economic periods, beauty tends to remain a priority as an affordable form of self-care. What keeps the sector attractive for investors is its ability to evolve, blending aesthetics with wellness, personalization and lifestyle trends that support steady, long-term demand.
Key growth drivers remain firmly in place. Skincare and hair care continue to gain share as consumers focus more on routines and preventative care. Premium and professional-grade products are also seeing stronger interest, while clean beauty — emphasizing transparency, safer ingredients and sustainability — has shifted from a niche to a mainstream expectation. At the same time, social media and digital channels are accelerating product discovery and shortening the time it takes for new launches to reach scale.
Consumer behavior is becoming more planned. Shoppers are researching ingredients, seeking expert-backed solutions and gravitating toward brands and retailers they trust. Loyalty programs, education and omnichannel access play an increasing role in repeat purchases, helping well-positioned companies generate more consistent traffic even when discretionary spending becomes selective.
Within this landscape, Sally Beauty Holdings SBH provides exposure to the professional and specialty segment of beauty, with a focus on salon-quality hair care that supports steady, recurring demand from both stylists and consumers. Its specialty positioning aligns well with growing interest in higher-quality and cleaner formulations. Meanwhile, Ulta Beauty ULTA benefits from its role as a leading beauty destination, leveraging a broad assortment across price points, a strong loyalty base and an effective omnichannel model to drive repeat traffic and engagement.
Backed by structural tailwinds, including skincare-led demand, digital-first engagement, clean beauty adoption and wellness-focused consumption, the beauty and cosmetics industry continues to offer a blend of defensive characteristics and long-term growth potential. Reflecting these favorable trends, our Beauty & Cosmetics Screen highlights a select group of stocks that appear well-positioned to capitalize on the industry’s evolving dynamics, including The Estee Lauder Companies Inc. EL, Coty Inc. COTY and Nu Skin Enterprises, Inc. NUS.
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3 Beauty and Cosmetic Stocks in Focus
As the beauty category becomes more science-led and routine-driven, Estee Lauder continues to position itself as a long-term compounder within prestige beauty. The Zacks Rank #1 (Strong Buy) company’s strategy centers on strengthening its core brands, including Estee Lauder, Clinique, La Mer and MAC, while sharpening its focus on skincare, which remains the most resilient and margin-accretive segment of beauty. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has leaned into dermatological science, ingredient efficacy and clinical validation to meet rising consumer expectations around performance and transparency. At the same time, Estee Lauder is expanding digital engagement through AI-powered tools, virtual try-ons and personalized diagnostics, aimed at improving conversion and repeat purchases.
While near-term pressures from travel retail normalization and cautious discretionary spending persist, EL’s emphasis on innovation, premium pricing power and global brand equity positions it well to benefit as prestige beauty demand stabilizes and recovers.
Coty’s role in the evolving beauty landscape is increasingly defined by simplification and margin discipline. The company has been actively reshaping its portfolio to concentrate on categories with stronger growth and profitability, particularly prestige and mass fragrances, while reassessing underperforming consumer beauty assets.
Brands and licenses across fragrance remain Coty’s core strength, offering more stable demand and less promotional intensity compared with color cosmetics. The Zacks Rank #3 (Hold) company has also focused on operational efficiency, cost controls and selective innovation to support earnings consistency.
However, Coty’s turnaround remains a work in progress, with execution risks tied to leadership transitions, portfolio changes and competitive intensity in mass beauty. That said, the strategic pivot toward higher-return categories reflects an effort to align the business with consumer trends favoring scent, personalization and premium experiences.
Nu Skin approaches the beauty and cosmetics space from a different angle, blending skincare science with technology and a direct-selling distribution model. The Zacks Rank #3 company’s ageLOC franchise remains central to its strategy, emphasizing device-enabled skincare solutions and regimented routines designed to drive repeat purchases.
Nu Skin has been refreshing product lines, updating packaging and expanding science-backed claims to better resonate with modern consumers who are increasingly focused on efficacy and long-term skin health. Its direct-selling model allows for personalized education and localized engagement, particularly in international markets, though it also introduces variability tied to distributor activity and regulatory oversight.
As beauty increasingly intersects with wellness and tech-enabled solutions, Nu Skin’s focus on skin health, devices and subscription-style consumption provides a differentiated, albeit higher-risk, exposure to the category.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	0.00 20.83
Price/Sales	2.61 0.79
P/B	9.67 1.93
P/FCF	46.80 19.15

Indicator	TTM Median
ROE	0.00 13.73
ROA	0.00 5.96
ROI	0.00 9.24
Net Worth	31.49 1.42
Quick Ratio	0.92 0.81
Current Ratio	1.30 1.34

Indicator	TTM Median
Net Profit Margin	0.00 6.65
Operating Margin	0.00 9.72
Gross Margin	74.19 34.34
Return on tangible equity	0.00 25.93

Indicator	TTM Median
EPS	0.32 0.53
EPS Forecast	0.16 0.45
Revenue	3.41B 147.00M
Gross Profit	2.46B —
EBITDA	0.00 —

Estee Lauder Companies, Inc. (The)

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue