Estee Lauder Companies Inc. (NYSE: EL) shares rose on Thursday Nov 17 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
Jefferies Group analysts reiterated its Hold rating on Estee Lauder Companies Inc. (NYSE: EL) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Hold on the stock, the company has a 52-week high of $97.48. As a means of comparison, a number of other analysts have spoken on the stock recently, and the company has secured a consensus one-year price target of $94.45, higher than the opening price of $77.48, a difference of 12.22 percent. Typically, after analysts assign a “reiterated rating” report on a stock, they will subsequently issue sporadic updates, usually followed by a price target change.
Shares of Estee Lauder Companies Inc. (NYSE: EL) opened at $77.48 on Monday trading between $76.84 and $77.68, and last traded at $77.26, which represents a spike of $0.25 or 0.32% from the previous closing price.
Estee Lauder Companies Inc. (NYSE: EL) currently has a market cap of 28.31B.
Estee Lauder Companies Inc. (NYSE: EL) Average Daily Trading Volume
The stock’s average daily volume is 1,901,420 shares out of a total float 218,757,000 and some 110,906 shares crossed the trading desk yesterday, lower than the average. Trading volume is likely to increase in the next few days as investors often use increases in trading volume to identify large volume aggregation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that investigate thousands of stocks, so it is good validation to see them buying a stock you are researching.
Estee Lauder Companies Inc. (NYSE: EL) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Estee Lauder Companies Inc. (NYSE: EL) now has a 50-day MA of $84.79 and 200-day MA of $89.95. It has traded in a 52-week range between $76.65 – 97.48 and today’s last price is 20.74%% lower than the 52 week high of $97.48.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have increased their earnings at least 25% or more over a 3 year period.
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