| Estee Lauder Companies is a manufacturer and seller of skin care, makeup, fragrance and hair care products. Co.'s skin care products include moisturizers, serums, cleansers, toners, body care, and exfoliators. Co.'s makeup products includes lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes and powders. Co. provides a variety of fragrance products, including eau de parfum sprays and colognes, as well as lotions, powders, creams, candles and soaps that are based on a particular fragrance. Co.'s hair care products include shampoos, conditioners, styling products, treatment, finishing sprays and hair color products. Co. also sells ancillary products and services. |
When researching a stock like Estee Lauder Cos., many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from EL Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for EL stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of these ways is called the Relative Strength Index, or RSI. This popular indicator, originally developed in the 1970's by J. Welles Wilder, looks at a 14-day moving average of a stock's gains on its up days, versus its losses on its down days. The resulting EL RSI is a value that measures momentum, oscillating between "oversold" and "overbought" on a scale of zero to 100. A reading below 30 is viewed to be oversold, which a bullish investor could look to as a sign that the selling is in the process of exhausting itself, and look for entry point opportunities. A reading above 70 is viewed to be overbought, which could indicate that a rally in progress is starting to get crowded with buyers. If the rally has been a long one, that could be a sign that a pullback is overdue.