An iconic beauty stock is getting its shine back. Stephanie Link says it’s still on sale

One of the ways I like to invest is finding best‑in‑class blue‑chip companies with global brands when they’re on sale. Estée Lauder fits the bill. I’ve held the stock for some time, and after the company’s fiscal fourth‑quarter results, I’m seeing the upside more clearly than ever. The New York‑based Estée Lauder owns more than twenty brands—among the most recognizable names in beauty such as Clinique, Jo Malone, MAC, Bobbi Brown and La Mer.
**Key Highlights**
– Estée Lauder operates across skin care, makeup, fragrance and hair‑care categories, providing investors direct exposure to the premium segment of the global beauty market.
– New chief executive Stéphane de La Faverie is driving “Beauty Reimagined,” a turnaround plan that accelerates sales, expands digital channels (Amazon, TikTok Shop, Sephora), increases brand investment, and tightens cost discipline. The initiative is projected to create roughly $1.2 billion in annual gross benefits, strengthening margins while fueling growth initiatives.
**Recent Performance**
In its latest quarter Estée Lauder exceeded expectations, raised its forward outlook and posted consistent quarterly gains. Travel retail showed improvement, online sales climbed at a double‑digit rate, and both gross and operating margins moved toward targets. Although the shares remain significantly below L’Oréal on a price‑to‑sales basis, the combined impact of improving organic sales, restored margins and a revitalised leadership team creates clear upside potential.
**Why Now?**
The turnaround is gaining momentum, indicating that the fundamentals—strong brand portfolio, capable management and a credible growth roadmap—are now reflected in the market. Investors watching for a value re‑rating see estée Lauder positioned to benefit from its strategic reset and rising performance metrics.
*Disclosure: The author holds a position with Hightower Advisors. All opinions expressed by the CNBC Pro contributors are the authors’ views and do not reflect CNBC’s editorial stance. This material is provided for informational purposes only and is not a recommendation to buy or sell any security.*

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