In this article, we discuss 5 best buy-the-dip consumer stocks to consider. If you want to see more stocks in this list, check out 10 Best Buy-The-Dip Consumer Stocks to Consider.
5. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 46
YTD Share Price Decline as of July 1: 30.72%
The Estée Lauder Companies Inc. (NYSE:EL) manufactures and markets skincare, makeup, fragrance, and hair care products worldwide. The company offers its products under the Estée Lauder, Clinique, M·A·C, Bobbi Brown, La Mer, Jo Malone London, Smashbox, GLAMGLOW, BECCA, Too Faced, Dr. Jart+, and The Ordinary brands. As of July 1, shares of The Estée Lauder Companies Inc. (NYSE:EL) have declined about 31% year to date.
On May 31, after China’s COVID-19 situation improved and restrictions were loosened in Shanghai and Beijing, Oppenheimer analyst Rupesh Parikh reinstated The Estée Lauder Companies Inc. (NYSE:EL) as his top pick. As he looks ahead to fiscal 2023, the analyst believes pricing benefits and a China and travel recovery could lead to approximately 10% constant currency sales growth. Moreover, the analyst thinks the August earnings could drive positive catalysts for shares. He maintained an Outperform rating and a $300 price target on the stock.
According to Insider Monkey’s Q1 data, 46 hedge funds were bullish on The Estée Lauder Companies Inc. (NYSE:EL), with combined stakes worth over $3 billion. Terry Smith’s Fundsmith LLP is the leading position holder in the company, with roughly 5.8 million shares valued at $1.5 billion.
Here is what Harding Loevner Global Equity Fund has to say about The Estée Lauder Companies Inc. (NYSE:EL) in its Q3 2021 investor letter:
“We sold cosmetic producer Estée Lauder, which we bought last March. At the time, the market reflected a dire outlook for retail demand, especially tourist-related; however, we found its Chinese business attractive and admired its agility across social media and other digital channels. As the stock has appreciated, the resulting valuation now leaves no room for error, such as a potential shift of Chinese consumers’ tastes away from US brands.”