10 Most Oversold S&P 500 Stocks in 2024

4) The Estée Lauder Companies Inc. (NYSE:EL)

% Decline In 1 Year: ~51.8%

Number of Hedge Fund Holders: 49

The Estée Lauder Companies Inc. (NYSE:EL) is engaged in manufacturing, marketing, and selling skin care, makeup, fragrance, and hair care products. The company’s stock has seen the brunt of slowdowns in its 2 crucial markets. These are Mainland China and the travel retail sector. Furthermore, the global geopolitical uncertainty continues to impact its stock price. However, Piper Sandler upgraded the shares of The Estée Lauder Companies Inc. (NYSE:EL) to $98 and has reiterated its “Overweight” rating. The company’s management of costs, together with revenue growth potential, can result in a quicker recovery in total shareholder return.

Despite the challenges, The Estée Lauder Companies Inc. (NYSE:EL) has a portfolio of highly respected and globally recognized brands. Its strength in prestige beauty and skincare places it well to capitalize on long-term trends in the overall beauty industry. The company has announced it is expanding its PRGP (Profit Recovery and Growth Plan), which includes the restructuring program. The expanded plan focuses on further transforming the operating model to finance a return to sales growth, restoring a robust double-digit adjusted operating margin over the next few years, and continuing to manage external volatility, including potential tariff increases.

Appleseed Fund, an investment management company, released its third-quarter 2024 investor letter and mentioned The Estée Lauder Companies Inc. (NYSE:EL). Here is what the fund said:

“Appleseed Fund added four new names to the portfolio in the past six months: The Estée Lauder Companies Inc. (NYSE:EL), Willis Lease Finance (WLFC), Diana Shipping (DSX) and Gravity (GRVY). Estée Lauder is one of the world’s largest producers of cosmetics products, and valuation has become very attractive as this premier beauty company is suffering from a post-COVID-19 hangover.”