The Estee Lauder Companies Inc. (EL)

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Stock Price History

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Our View

Estee Lauder is one of the most recognized brands in the cosmetics industry. It is one of the world’s leading manufacturers of skincare, makeup, fragrance, and hair care products. It has long-standing relationships with major retailers around the world. The company’s large scale gives it cost advantages. Growing discretionary incomes around the world is a universally acknowledged long-term phenomenon and that trend will boost the long-term prospects of Estee Lauder.

The 20-year monthly chart of Estee Lauder’s stock shows an accelerated uptrend that began about 3 years ago in 2017. The stock fell about 22% in the first three months of 2020. However, it bounced back up by about 12% in April 2020 after hitting a significant area of value comprising of the bottom of the long term trend and a historical support level at 160.

The price is currently holding up above the bottom of the long-term trend and looks poised to test the most recent resistance level at 206. If it breaks out from there, then the next target can be 230 or the top of the long term trend. Estee Lauder, therefore, looks good for a long position with a stop-loss below  the 160-support level as shown  by the dashed red line.

Position taken at $172.54 with stop loss 21.1% below at $136.08.  Short term trader’s take profit at the top trend line indicated in yellow yielding a profit of 28%.