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3 Beauty Stocks to Watch Ahead of Sector Earnings

EL is enjoying a halo lift from its sector peers' pre-earnings rallies

Digital Content Manager
Nov 27, 2024 at 1:53 PM
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Ulta Beauty Inc (NASDAQ:ULTA) stock is leading the S&P 500 Index (SPX) today ahead of the cosmetics retailer's third-quarter results, which are due out after the market closes on Thursday, Dec. 5. e,l.f Beauty Inc's (NYSE:ELF) fiscal second-quarter report is not far behind, scheduled for release after the market closes on Friday, Dec. 6. Both events could have implications for sector peer Estee Lauder Companies Inc (NYSE:EL), making this an excellent time to check in with these three beauty industry giants.

ULTA is up 4.2% at $375.70, looking to close back above its 100-day moving average as it extends a bounce off its lowest level since August. Shares haven't fared well after earnings over the last two years, though, finishing lower in five of the last eight next-day sessions to average a move of 5%, regardless of direction. This time, the options pits are pricing in a larger swing of 7.9%.

ELF was last seen up 3.5% to trade at $128.69, on track for its fourth gain in the last five sessions, but still carries a 10.9% year-to-date deficit. The security has a much better post-earnings track record, settling higher after six of its last eight reports. The shares averaged  a swing of 12.9% in the last two years, regardless of direction.

EL seems to be getting a halo lift from its peers' pre-earnings rallies, up 4% at $76.06 at last glance. The shares are bouncing off a Nov. 12, 12-year low of $62.29 and on track an eight-straight daily gain, but still carry a 48% deficit for 2024.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

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