Financial Education on $EL (Nov 2, 2026)
Estee Lauder's earnings deserve an 'A': sales up 7%, gross margin up to 75.7% from 73.4%, operating income more than doubling to $408 million and net income nearly five times last year's, with cash up to about $3.2 billion and debt reduced. On that strength and broad regional growth, the speaker sees the $104 stock, versus $370 in 2020, with a chance to double or triple, though he is unsure it reaches $370 and is not calling a new all-time high.
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And then, let's talk about a great hidden stock that's worth buying, right? It's Look. This company released its earnings report this morning. I would give it an 'A' grade. Net sales are up 7%.
Cost of sales are down 3%. Gross profit is up 10%. Gross profit margin is up 75.7% from 73.4%. Great achievement, absolutely amazing. SG &A expenses are up only 3%. Total operating expenses are up 1%.
Operating income is up to $408 million this quarter, up from $169 million in the same quarter last year. That's more than double, right? Operating income margin is up to 11% from 4.9% last year , amazing!
Pre-tax profit is up to $345 million from $109 million last year. Oh my God ! Net income is up to $233 million from $47 million last year. That's almost five times what it was last year.
I mean, how great! Diluted EPS is up to 64 cents compared to 13 cents last year. These numbers are really great. Look at the cash and cash equivalents on the balance sheet. This is compared to the same period last year.
Their cash went from $2.2 billion to about $3.2 billion in the last quarter. Long-term debt went from $7.3 billion to $6.7 billion , right? And if you look at total equity , it went from $3.8 billion to over $4 billion.
It's incredible. The company is doing great, isn't it ? If you don't know, this company does business all over the world. The Americas division grew 5%. The European division grew 2%.
The Asian division grew 9%, with China growing 15%. This company sells beauty products. Skincare grew 5%, makeup grew 2%, and fragrances performed great, up 19%. Haircare is down 1%, but that's a small division of theirs.
The other divisions grew 12%. The company is Estee Lauder. Speak louder for the people behind it. Its current share price $104. This stock was at $370 in 2020. We have a chance to go to $370, not sure, but somewhere in between .
I'm not talking about a new all-time high. I'm just saying we have a chance to double or even triple this stock. So far I've made $63,000 in profit on my public account. There's a long way to go.
What this channel has said about $EL
Financial Education has 7 calls on this stock; only the adjacent ones are shown.