Estee Lauder Companies Inc. (NYSE: EL) Stock Gets Downgraded at Zacks Investment Research

Analysts at Zacks Investment Research downgraded shares of Estee Lauder Companies Inc. (NYSE: EL) from Hold to Sell in a research note to investors today. With a rating of Sell on the shares, the company has a 52-week high of $97.48. The one-year price target of $0.55 is a decrease compared to the opening price of $87.85, causing a number of other analysts to comment on the company recently. Downgrades are more common when analysts feel that the future prospects for the security have dropped from the initial recommendation, usually due to a considerable and major digression in the company’s procedures, future vision or industry.

U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.

The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.

The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.

The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.

Shares of Estee Lauder Companies Inc. (NYSE: EL) opened at $87.85 yesterday trading between $87.29 and $88.19, and last traded at $87.30, which is a dip of $0.08 from the previous closing price.

Estee Lauder Companies Inc. (NYSE: EL) currently has a market cap of 31.93B.

1,242,174 shares crossed the trading desk yesterday, 120 percent below normal, out of a total float 216,253,000. Investors often use upticks in trading volume to pinpoint substantial volume accumulation or circulation by institutional investors, so trading volume is likely to increase in the next few days.

While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

Trades for Estee Lauder Companies Inc. (NYSE: EL) have ranged from $77.05 – 97.48, and the stock now has a 50-day MA of $90.77 and 200-day MA of $92.61. Today’s last price is 0.10% lower than the 52 week high of $97.48.

Earnings growth is a critical factor to research when investing in stocks and investors identify companies that have raised their earnings at least 25% or more over the past 3 years.

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