Estée Lauder’s 35% Volume Drop Contrasts with Top 500 Stock Momentum Strategy’s 166% Return

On July 31, 2025, The Estée Lauder Companies Inc. (EL) closed at $93.25, down 0.34% with a trading volume of $350 million, marking a 35.06% decline from the previous day. Institutional investors, including Private Advisor Group LLC, added 10,484 shares, valued at $692,000, reflecting sustained interest in the stock. Recent analyst activity highlights mixed signals, with Morgan Stanley upgrading EL to “Overweight” and JPMorgan raising its price target to $101, citing strong online sales and improved performance during the “6.18 event.”

Strategic moves and leadership changes underscore operational adjustments. Aude Gandon was appointed Chief Digital & Marketing Officer, joining the executive team to drive growth. The company expanded its digital presence by launching Estée Lauder and Aveda in Amazon’s premium beauty store, targeting broader e-commerce access. Additionally, Brian Franz transitioned to Chief Technology, Data & Analytics Officer, signaling a focus on digital transformation. These initiatives aim to enhance market reach and operational efficiency amid evolving consumer trends.

Financial metrics, however, reveal challenges. The company’s debt-to-equity ratio stands at 2.16, with a GF Score analysis indicating weakened financial strength and growth prospects. Quarterly revenue fell 9.9% year-over-year to $2.66 billion, despite beating EPS estimates at $0.65. Analysts note declining three-year revenue growth (-0.6% annually) and a low growth rank, raising concerns about long-term profitability in a competitive sector.

A backtested strategy involving the top 500 stocks by daily volume yielded a 166.71% return from 2022 to 2025, outperforming the S&P 500’s 29.18% benchmark. This highlights the potential of volume-driven momentum strategies in capturing market movements, even amid fluctuating trading volumes and rankings.