Trading Update for Estee Lauder Companies (EL)

After a recent check on shares of Estee Lauder Companies (EL), we can see that the stock price had touched 177.62. Shares opened the session at 177.28. Since the start of the session, the stock has topped out with a high of 178.38 and bottomed with a low of 176.07. After noting current price levels, we can see that the change from the open is presently 0.74.

Many investors are concerned with the proper portfolio diversification. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks. They may also be spreading out stock picks among various industries. Keeping a mix of stocks that perform differently under certain market conditions can help keep the portfolio afloat when the environment shifts. Holding a few large positions in a small number stocks may lead to trouble if the market turns sour and stock prices decline drastically.

Earnings Focus

Estee Lauder Companies (EL) last reported earnings results on 05/01/19. For the most recent period, the company posted quarterly EPS of  1.55. The trailing 12 month earnings number is currently 5.31. The company’s EPS growth over the previous quarter clocks in at -10.92%. The EPS metric is frequently used to measure a company’s profitability based on each outstanding share of common stock.

When conducting stock research, some investors will choose to start from the top-down while others may choose to begin from the bottom-up. Starting from the top-down typically includes studying the overall economy, industries, and multiple markets. Stocks tend to perform differently at certain points in economic cycles. Figuring out where the economy is can help find the sectors that will outperform. Once specific sectors are identified, investors might be able to then select certain stocks within those sectors. Investors who start with from the bottom-up may start by analyzing individual stocks first. This may include looking for stocks that are undervalued in relation to the perceived value of the company. Many investors will use a combination of both styles when undertaking detailed stock research.

Relative Strength      

Investors may be tracking various technicals on shares of Estee Lauder Companies (EL). We can see that the 9 day relative strength value is currently  67.88%. This technical momentum indicator compares the size of recent gains to recent losses helping to identify possible overbought and oversold conditions. The 9 day historical volatility reading is currently 13.21%. This measures the average deviation from the average price spanning the past 9 days. The current 9 day MACD has been spotted at 1.27. This value represents the difference between a short-term and a long-term moving average. A reading over zero may provide a bullish signal, and a value under zero may represent a bearish signal.

Focusing in on some other information, we can see that Estee Lauder Companies (EL) has a current weighted alpha of +25.60. The weighted alpha gauges how much the stock has increased or decreased over the period of one full year. The weighting puts higher emphasis on more recent activity providing a more relevant measure for short-term technical analysts to use. A positive weighted alpha reading indicates that the stock has risen over the past year. A negative reading would indicate that the stock is down over that same time period. Technical traders often use the weighted alpha to help discover stocks that are building momentum. 

When conducting stock research, some investors will choose to start from the top-down while others may choose to begin from the bottom-up. Starting from the top-down typically includes studying the overall economy, industries, and multiple markets. Stocks tend to perform differently at certain points in economic cycles. Figuring out where the economy is can help find the sectors that will outperform. Once specific sectors are identified, investors might be able to then select certain stocks within those sectors. Investors who start with from the bottom-up may start by analyzing individual stocks first. This may include looking for stocks that are undervalued in relation to the perceived value of the company. Many investors will use a combination of both styles when undertaking detailed stock research.