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Estee Lauder – Best Cosmetic Stock To Buy

Estee Lauder is one of the biggest brands in the cosmetics industry. It is very well known for products under the Clinique and MAC brands. Estee Lauder derives a significant portion of its revenue from skincare products. If you are an investor looking for personal care stocks to buy, then Estee Lauder would be an exciting company to research further. According to Estee Lauder’s management, the demand for skincare products has been relatively resilient even through the pandemic. The need for makeup has fallen in comparison as closures of businesses and other places of activity and entertainment have been subjected to lockdown guidelines. Therefore, specific segments within the cosmetics industry can actually turn out to be suitable investments.

Estee Lauder Reports Q22021 Earnings Results

In early February 2021, Estee Lauder reported its second-quarter 2021 earnings results. Revenues were up 5% year on year from $4.6 billion in Q22020 to $4.8 billion. The gross margin remained steady at a shade above 77%. Net earnings also jumped from $561 million to $877 million. Earnings per share on a diluted basis improved from $1.52 in Q22020 to $2.37, a growth of 56% year-on-year. Retailers through which Estee Lauder sold its products have been emphasizing on their digital strategies, which have aided the second-quarter results. Certain pockets in Asia also managed to deliver growth as pandemic restrictions eased in those regions. The company’s sales growth was also aided by the acquisition of Have&Be Co Ltd, which ended up contributing three percentage points to the total quarterly sales results. Estee Lauder continues to be rated as one of the best cosmetic stock to buy.

Personal Care Stocks To Buy

Personal care stocks like Estee Lauder have returned to growth in the first half of 2021. It demonstrates that the company has multiple channels for sales and has a presence in various segments of the beauty industry. It is not overly dependent on features that struggled during the pandemic. Estee Lauder has a track record of innovation and comes out with new products regularly. Additionally, the company has also grown through acquisitions.


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