Jim Cramer Discusses These 10 Stocks & Dissects President Trump’s China Tariffs

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

Number of Hedge Fund Holders In Q3 2024: 49

The Estée Lauder Companies Inc. (NYSE:EL) is a beauty products company that has failed to impress investors amidst a global economic slowdown that has hit Europe and China particularly hard. Its shares have lost 52.8% over the past year, with China in particular hampering the stock’s performance. The Estée Lauder Companies Inc. (NYSE:EL) earns more than 30% of its revenue through Asia, and Cramer commented on the firm’s misplaced business decisions that have led to the troubled stock price:

“I would say that they made their bet with China, and they made their bet with duty free. And they’re terrible, terrible bets. I’m gonna have ELF on tomorrow, they import a lot of China. . .I come back and I just say, this company is so challenged. And by the way, let’s just understand, they never cut prices. Their price is way too high. And if you stack up ELF versus those, I know people want to hear at Estee Lauder, no one knows the . . .difference. So they never cut price, they never understood what’s happening overseas. And they got it completely wrong, you couldn’t, that stock wasn’t, if you take a longer term view of where that stock was, this was a blue chip. And I made a lot of money in it and then I lost a lot money in it. This is my charitable trust. But wow, you couldn’t be more wrong. . . .Horrendous. I mean what’s incredible is that historically they’ve done a good number and then they’ve done a guide that’s weak. And that allowed them to beat it. Now they did a really bad number. They gave a guide that’s weak. I wouldn’t touch this thing with a ten foot pole.”