Estée Lauder Rises 1.64% on 20-Day Breakout, 276th in Daily Volume as Earnings Outlook Brightens Amid Valuation Doubts

On August 15, 2025, The Estée Lauder Companies Inc. (EL) closed with a 1.64% gain, trading at $90.80 with a daily volume of $0.37 billion, ranking 276th in market activity. The stock crossed above its 20-day moving average, a technical signal often associated with short-term bullish momentum. Analysts highlighted upcoming earnings on August 20, with expectations of outperforming estimates, while a Zacks report noted e-commerce contributing 11% of net sales, raising questions about sustainability. A Saudi Arabia halal cosmetics market report also featured EL as a key player, suggesting regional growth potential.

Recent analyst activity indicated a mixed outlook, with 10 research reports in the past 90 days and a consensus "Hold" rating. Short interest in EL decreased by 3.28% month-over-month, reflecting improving investor sentiment. The company announced a webcast for fiscal 2025 fourth-quarter results, a standard procedural update. Despite a projected 69.12% earnings growth for the next fiscal year, EL’s negative P/E ratio (-39.38) underscored ongoing profitability challenges, while its P/B ratio of 6.43 suggested potential overvaluation relative to peers.

The strategy of buying the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 generated a 31.52% total return over 365 days, with an average daily gain of 0.98%. This highlights the strategy’s ability to capture short-term momentum but also exposes its vulnerability to market volatility and timing risks.