Jim Cramer Discussed These 12 Stocks Recently

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

Number of Hedge Fund Holders: 49

The Estée Lauder Companies Inc. (NYSE:EL) was mentioned during the episode. Here’s what Mad Money’s host had to say:

“First, you have to ask, is it dependent upon China in any way, shape, or form? That’s been the kiss of death for a really good casino company, Wynn Resorts, and for Estee Lauder, the mess of a cosmetics company.”

Estée Lauder (NYSE:EL) produces and distributes a diverse array of skincare, makeup, fragrance, and hair care products worldwide, featuring well-known brands like Estée Lauder and Clinique. The company stock was down over 50% in 2024.

Aristotle Atlantic Partners, LLC stated the following regarding The Estée Lauder Companies Inc. (NYSE:EL) in its Q3 2024 investor letter:

“We sold The Estée Lauder Companies Inc. (NYSE:EL), as Chinese consumer headwinds continue to present an unpredictable pace of recovery. And while Estée has taken action to reduce costs and drive a profit recovery plan, it is apparent that a certain level of volume will be necessary to make that plan successful, and that is difficult to predict with a high degree of certainty. China-driven travel retail business continues to be slower than anticipated, pushing out the expected timing of a recovery. Despite the weakness in share price, Estée continues to trade at a premium multiple, and consensus estimates may prove aggressive should Chinese consumer weakness linger. Lastly, with a pending transition in both the CFO and CEO roles, we see the potential for another reset as the new management team takes over.”