Is Estée Lauder (EL) the Most Oversold Stock?

As an investor, you might be wondering if Estée Lauder (EL) is the most oversold stock out there. With a market cap of $501.95 billion and a stock price that has decreased by 42.83% in the last 52 weeks, it's easy to see why some might think so. But is it really the most oversold? Let's dive into the data and find out.

First, let's look at the analyst ratings. As of February 17, 2025, the average analyst rating for EL stock is "Hold," with a 12-month stock price forecast of $81.33, which represents an 18.40% increase from the latest price of $68.69. This suggests that analysts believe the stock is likely to perform similarly to the overall market, but there is potential for upside.

However, the fact that the stock is currently trading at a significant discount to its average price target indicates that it may be oversold. The stock's current price is 12.46% lower than the average price target, which could be an attractive entry point for investors.

Now, let's consider the company's fundamentals and growth prospects. Estée Lauder has faced challenges in recent quarters, including weak sales and declining margins in its China and travel businesses. These losses are expected to continue in the near term, given downbeat guidance. However, the company has taken steps to address these issues, such as cutting up to 7,000 jobs and restructuring its operations.

Despite these challenges, Estée Lauder has a strong brand portfolio and a history of innovation and growth. The company's long-term prospects remain positive, and analysts expect the stock to outperform prestige beauty in fiscal 2026 and accelerate profitability expansion.

So, is Estée Lauder the most oversold stock? Based on the data, it's clear that the stock is trading at a significant discount to its average price target, which could indicate that it is oversold. However, the company's fundamentals and growth prospects are subject to uncertainty, and investors should carefully consider the risks and opportunities associated with the stock before making a decision.

In conclusion, while Estée Lauder may be oversold based on its current stock price and analyst ratings, investors should carefully consider the company's fundamentals and growth prospects before making a decision. The stock's recent performance and challenges in key markets, such as China, should be taken into account, as well as the company's strategies to address these issues. By doing so, investors can make a more informed decision about whether Estée Lauder is the most oversold stock or if there are other opportunities that may be more attractive.