12 Stocks on Jim Cramer’s Radar

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

Number of Hedge Fund Holdings: 45

The Estée Lauder Companies Inc. (NYSE:EL) is one of the largest cosmetics companies in the world. Its shares are up by 52% over the past year but are down by 6.8% year-to-date. Wells Fargo started the year on a strong note for the firm. It raised The Estée Lauder Companies Inc. (NYSE:EL)’s share price target to $111 from $95 and kept an Equal Weight rating on the shares in January. However, following the earnings report, Wells Fargo reduced the target price to $105 from $111. It pointed out that The Estée Lauder Companies Inc. (NYSE:EL) experienced high expectations, which meant that the results had to be pitch-perfect. Cramer discussed the impact of China and the momentum the shares had experienced ahead of the earnings:

“Este Lauder ran up a lot, I think they’re being hurt by Chinese prices. But remember, Este Lauder went up a lot after we had a management change and then the company came back and it looked like it was going to roar. But I just don’t think they have the horses I would not own that stock, not one bit, no way, no hell. Don’t own it, they’re not coming back. . .oh my, I mean, this is, when you have these expensive products, the Chinese like some and they don’t like the others and Este Lauder’s in a lot of the wrong doors.”

Hardman Johnston Global Equity Strategy also discussed The Estée Lauder Companies Inc. (NYSE:EL) in its third quarter 2025 investor letter:

“During the quarter, we initiated three new positions in The Estée Lauder Companies Inc. (NYSE:EL), STMicroelectronics NV, and Prysmian S.P.A. Estee Lauder Companies Inc. is a leading player in a structurally attractive beauty industry that has been under-managed in recent years. Our investment thesis is supported by solid industry dynamics, with global beauty growing mid-single digits and luxury beauty growing faster. After a period of underperformance, Estée Lauder is taking steps to stabilize and regain market share. The company is successfully implementing “self-help” measures through restructuring and productivity improvements, recovering approximately 600 basis points in gross margin and over 1,000 basis points in operating margin. Combined with mid- to high-single-digit revenue growth and share gains, these improvements should drive strong double-digit earnings growth and support expanding valuation.”