Estée Lauder – a steady climber in our longterm porto!

Since I have gotten my girlfriend involved in stock trading (and the fact that I believe that my porto will be a welcome addition to my pension later). We have tried to find some long term stocks that we both feel comfortable with. They say do not buy anything that you do not understand and buy something you have an affection with. So here we have our first ladies stock; “Estée Lauder”.

Estée Lauder has been performing pretty well the last few years and we think it will continue to do so. That’s why we have added a small portion to our Porto.Purely on technical analysis it might be a good time to buy. It has fallen a little since the last top but it will not go down much more. The latest results were good so we expect a small rise in the next quarter or so. The WPA (that’s dutch for profit per share) is 43 cents for the last quarter and that is a rise of about 10%compared to last year. Net sales are $2.65 billion ($2.650.000.000 😮 ) and both sales and profit rose 5% compared to last year. Also the summer hollidays have ended (remember be back in september). That gives us enough reasons to believe it is time for an increase in stockprice and that is why we bought.

From the press release:

“Estee Lauder expects further growth opportunities in the global prestige beauty category, which is expected to grow 4-5% over the course of the year. However, the volatility and economic challenges are slowing the pace of growth of the market in Hong Kong, France and a number of emerging markets.

For fiscal 2016, Estée Lauder maintained net sales growth projection at 6–7% on a constant currency basis. Foreign currency is expected to impact sales negatively by 1%.

The company expects adjusted earnings in the range of $3.38–$3.44. per share for fiscal 2017. On a constant currency basis and after adjusting for the effect of accelerated retailer orders, earnings are expected to grow 8–10%”.

All in all we think it is a nice stock to buy now and keep for the long run. A nice buy-and-hold candidate for the next 20 to 30 years.

Estee 03-09-16

And now it is:

EL
(%)

About the author

" A wise man can learn more from a foolish question than a fool can learn from a wise answer "