4 "En Vogue" Fashion Stocks

NYSE: EL | Estee Lauder Cos. Cl A News, Ratings, and Charts

EL – Many fashion companies are seeing strong sales and strong stock performance due to online shopping. Here are 4: EL, LULU, TIF, and DECK.

When much of the world went into lockdown in March, many retail companies shut down, and apparel stocks suffered. Fashion clothing took a back seat to essential everyday items. Nevertheless, some apparel companies took advantage of the growth of online shopping. Some even began selling masks to accommodate demand due to the coronavirus pandemic.

As stores have re-opened customers couldn’t wait to engage in some “retail therapy.” Many fashion companies are seeing strong sales and strong stock performance. The Estee Lauder Companies (EL), Lululemon Athletica (LULU), Tiffany & Co (TIF), and Deckers Outdoor (DECK) are all seeing gains as shoppers want to look great during the warm weather.

The Estee Lauder Companies, Inc. (EL)

EL is a global manufacturer of premium skincare, hair care, makeup, and fragrance products. The company has been adversely affected by the pandemic, but it has pivoted to focusing on online sales to compensate for the drop in foot traffic in retail stores. EL’s acquisition of Have & Be Co. last year also contributed to its sales growth.

In the quarter ending March 31st, the company witnessed a growth in net cash flows to $1.95 billion from $1.76 billion a year ago. EL’s earnings surprise history is impressive as well, with the stock beating consensus EPS estimates in each of the trailing four quarters.

EL’s stock has recovered more than 35% from the 52-week low it hit in mid-March due to the overall crash in the market. The company’s strong recovery could be part of a growth momentum that could last for the rest of 2020.

How does EL stack up for the POWR Ratings?

A for Trade Grade

B for Buy & Hold Grade

A for Peer Grade

B for Overall POWR Rating

You can’t ask for better. The stock is also ranked #4 out of 65 stocks in the Fashion & Luxury industry.

Lululemon Athletica, Inc. (LULU)

LULU focuses on designing, manufacturing, and marketing athletic apparel and accessories for men, women, and female youth. It operates through corporate-owned stores as well as through direct-to-customer sales.

The company recently announced its plan to acquire the at-home fitness company Mirror at a price of $500 million. This move could help the company break into a new and emerging market.

LULU has also been adversely affected by the spread of the coronavirus and has had to close its retail counters across the world. However, according to the earnings report for the quarter ending May 3rd 2020, the company has cash and cash equivalents to the tune of $823 million. It feels confident that it has enough liquidity to drive recovery once the pandemic abates.

Though LULU missed the consensus EPS estimate last quarter, it beat the estimates in the prior three quarters.

Moreover, the stock has been rising since hitting its 52-week low of $128.85 on March 18th due to the coronavirus-led market crash. LULU gained more than 150% during this period, and the momentum might continue given the strength in its business model.

It’s no surprise that LULU is rated a “Strong Buy” in our POWR Ratings system. It also has an “A” for Trade Grade, Buy and Hold Grade, and Peer Grade. In the 65-stock Fashion and Luxury industry, it is ranked #1.

Tiffany & Co. (TIF)

TIF is one of the world’s leading jewelry brands. The company is set to be acquired by LVMH Moët Hennessy as part of a $16.2 billion deal. This move could help shore up TIF’s finances and allow it to meet its future goals.

According to TIF’s earnings report for the quarter ending April 30, 2020, the company has cash and cash equivalents worth $1.1 billion. This could provide the company with the financial flexibility it needs to weather these uncertain times.

TIF has also been performing well in this “new normal.” t has added close to 20% to its stock price since this year’s low of $103.89 hit on March 18th due to the virus-driven market crash.

TIF’s strong fundamentals are reflected in its POWR Ratings, it has a “Buy” rating with an “A” in Buy & Hold Grade and Peer Grade. Within the Fashion & Luxury group, it’s ranked #6 out of 65 stocks.

Deckers Outdoor Corporation (DECK)

DECK designs, markets, and sells apparel, footwear, and accessories for high-performance activities and for a casual lifestyle. The company operates three brands — Teva, Sanuk, and UGG.

While the pandemic significantly affected DECK, the company has focused on its e-commerce portals such as UGG.com, Sanuk.com, and Teva.com. Even though their stores had faced temporary closures, they are now open and running.

For the quarter ending March 31st, 2020, the company reported that it had cash and cash equivalents of $649.4 million compared to $589.7 million during the same period last year. This could provide the company with the financial security it needs to come out stronger once the situation stabilizes.

The earnings surprise history for DECK looks pretty good, as the company beat the consensus EPS estimates in each of the trailing four quarters.

It’s no surprise that DECK is rated a “Strong Buy” in our POWR Ratings system. It also has an “A” for Trade Grade, Buy and Hold Grade, and Peer Grade. In the 65-stock Fashion & Luxury industry, it is ranked #3.

Want More Great Investing Ideas?

9 “BUY THE DIP” Growth Stocks for 2020

How HIGH Can This Tech Bubble Fly?

7 “Safe-Haven” Dividend Stocks for Turbulent Times


EL shares . Year-to-date, EL has declined -6.30%, versus a 1.69% rise in the benchmark S&P 500 index during the same period.


About the Author: Aaryaman Aashind


Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ELGet RatingGet RatingGet Rating
LULUGet RatingGet RatingGet Rating
TIFGet RatingGet RatingGet Rating
DECKGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Estee Lauder Cos. Cl A (EL) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All EL News