Dividend Stock To Watch: The Estee Lauder Companies Inc. (EL)

The Estee Lauder Companies Inc. (NYSE:EL) share price jumped at US$ 83.72 before falling back to end the trade at US$ 82.97 a share. The dividend stock is -13.6% off a 52-week high stock price of US$ 97.48 but is up 10.63% since hitting the US$ 75.3. Investors are buying the stock with a trailing-twelve-month price-to-earnings (P/E) ratio of 28.69.

After a -0.93% fall from previous close of US$ 83.75, The Estee Lauder Companies Inc. (EL) has a US$ 30.5 Billion market cap. The company pays a US$ 0.34-cent-per-share quarterly dividend, giving it a 1.64% yield. That brings its full year payout to US$ 1.36 and 42.1% annual payout ratio based on EPS. According to FT, Year on year, both dividends per share and earnings per share excluding extraordinary items growth increased 23.91% and 4.83%, respectively. The positive trend in dividend payments is noteworthy since only some companies in the Personal & Household Prods. industry pay a dividend. Additionally when measured on a five year annualized basis, dividend per share growth is above the industry average relative to its peers, while earnings per share growth is in-line with the industry average.

The EL has soared 8.91% year-to-date. The equity has gained steam in recent weeks, with shares up about 7.57% in the past three months. It added -1.99%, climbed 1.64% and jumped -7.98% in the week, one month and six months, respectively. Revenue growth rate was recorded at 5% and net income per share was seen moving at a 11.2% rate in the past five years.

The Estee Lauder Companies Inc. (NYSE:EL) is over 6% above analysts’ consensus price target of US$ 89.4. The stock has blown through analysts’ low price target of US$ 72, but is still below the high US$ 105 target. On a price appreciation basis over the past 12 months, the stock returned -8.25%.

Financial Times data shows, In 2016, Estee Lauder Companies Inc reported a dividend of 1.14 USD, which represents a 23.91% increase over last year. The 14 analysts covering the company expect dividends of 1.29 USD for the upcoming fiscal year, an increase of 13.16%. The most recent short interest data show 2.69% of the company’s stock are short sold. It would take about 2.72 days to cover all short positions. In terms of volatility, it has a beta coefficient of 0.87 and technical analysis volatility indicator called Average True Range or ATR around 1.22.

The Estee Lauder Companies Inc. (NYSE:EL) closed -3.07% below its 200-day moving average which many technicians use as a guide to the long-term trend, so stocks above the line are considered to be in longer-term uptrends, while those below it are considered to be in downtrends. The stock is 3.8% above another chart threshold, its 50-day moving average and 0.58% above its 20-day simple moving average.

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Dividend Stock To Watch: The Estee Lauder Companies Inc. (EL)

Analyst Opinion Summary: The Estee Lauder Companies Inc. (EL), Teradyne, Inc. (TER)

The Estee Lauder Companies Inc. (NYSE:EL) tinted loss of -0.08% (-0.07 points) to US$ 82.59. The volume of 1.68 Million shares climbed down over an trading activity of 2.12 Million shares. EPS ratio determined by looking at last 12 month figures is 2.89. Over the same time span, the stock marked US$ 97.48 as its best level and the lowest price reached was US$ 75.3. The corporation has a market cap of US$ 29.89 Billion.

The Estee Lauder Companies Inc. (NYSE:EL)’s earnings per share has been growing at a 11.2 percent rate over the past 5 year when average revenue increase was noted as 5 percent. The return on equity ratio or ROE stands at 29.2 percent while most common profitability ratio return on investment (ROI) was 20.2 percent. The company’s institutional ownership is monitored at 94.1 percent. The company’s net profit margin has achieved the current level of 9.5 percent and possesses 80.2 percent gross margin.

Daily Analyst Recommendations

A number of key analysts, polled by FactSet, shared their views about the current stock momentum. The forecast of 14 surveyed investment analysts covering the stock advises investors to Buy stake in the company. At present, 1 analysts call it Sell, while 8 think it is Hold. Recently, analysts have updated the overall rating to 2.3. 3 analysts recommended Overweight these shares while 1 recommended Underweight, according to FactSet data.

Teradyne, Inc. (NYSE:TER) is worth US$ 5.8 Billion and has recently risen 0.56% to US$ 28.9. The latest exchange of 1.68 Million shares is below its average trading activity of 2.26 Million shares. The day began at US$ 28.91 but the price moved to US$ 28.55 at one point during the trading and finally capitulating to a session high of US$ 28.99. The stock tapped a 52-week high of US$ 29.03 while the mean 12-month price target for the shares is US$ 29.47.

Currently, the stock carries a price to earnings ratio of 0, a price to book ratio of 3.17, and a price to sales ratio of 3.31. For the past 5 years, the company’s revenue has grown 4.2%, while the company’s earnings per share has grown -16.4%. With an institutional ownership near 95%, it carries an earnings per share ratio of -0.22.

Inside Look At Analysts Reviews

Latest analyst recommendations could offer little help to investors. The stock is a Buy among 8 brokerage firms polled by Factset Research. At present, 8 analysts recommended Holding these shares while 0 recommended sell, according to FactSet data. 0 analysts call it Underweight, while 0 think it is Overweight. Recently, investment analysts covering the stock have updated the mean rating to 2.4.

Analyst Opinion Summary: The Estee Lauder Companies Inc. (EL), Teradyne, Inc. (TER)