In today’s edition of the Daily Stock Report, we highlight a new name that has recently shown some early positive signs. Estee Lauder Companies Inc. (EL) entered the Favoured Zone on the SIA S&P 500 Index Report on July 1, 2025, at a price of $85.11. Although it has not moved up the rankings significantly, the shares have continued to demonstrate resilience, maintaining a favoured position at number 114 out of 505 spots in the report. Estee Lauder has gained 3.90% over the past month and 8.44% over the past quarter.
In the attached candlestick chart of Estee Lauder, we can see that the shares were in a steady downtrend from early 2023 through to the spring of 2025, when they finally found a bottom near the $50 level as buyers stepped in. Since then, the trend has begun to reverse, with a strong rally to the $90 area in July, followed by a period of tight sideways consolidation between $80 and $90.
What is notable is that the recent rally to $90 established a higher high relative to the previous peak of around $85 in January 2025, an encouraging sign that the trend may be turning to the upside. For the uptrend to continue, the shares will need to break above the current $90 trading range. If this occurs, a new upward leg will likely form, with resistance expected near the psychological level of $100 and, above that, potentially towards the $150 area. On the downside, investors should watch to see if the shares can continue to hold support around $80, the lower end of the current consolidation range.
The benefit of using Point and Figure Charts is that they allow investors to see upcoming support and resistance levels with greater precision. Reviewing the Point and Figure chart at a 2% scale for an investment-grade analysis, we can see that the shares bottomed out around $49.65 in April. A steady pattern of higher highs has since emerged, with a rising column of Xs forming between May and July as the shares broke above the $73.78 and $83.09 price points before pausing at $93.00 to consolidate gains.
We can observe staggered resistance around $95.44 and, above that, near $99.30. However, if the shares can move through these closely aligned resistance levels, the next significant resistance is not seen until $125.93, where the long-term downtrend (red) line currently sits. On the downside, the shares will need to hold support at $83.09 to keep the current tight trading range intact. If that level fails to hold, the next area of support is down near $66.82.
With an SMAX score of 6 out of 10, Estee Lauder continues to display some near-term relative strength against the asset classes. However, it will be important to see whether this positive SMAX score can be sustained. The shares are approaching a key inflection point in the chart pattern, and it will be interesting to see which direction they resolve to — whether upward or downward.
Estee Lauder is the world leader in the global prestige beauty market, operating across skincare (59% of fiscal 2021 sales), makeup (26%), fragrance (12%), and haircare (3%) categories. Its portfolio includes well-known brands such as Estee Lauder, Clinique, MAC, La Mer, Jo Malone, Aveda, Bobbi Brown, Too Faced, Origins, Dr. Jart+, and The Ordinary. The company operates in 150 countries, with 23% of fiscal 2021 revenue derived from the Americas, 43% from Europe, the Middle East and Africa, and 34% from Asia-Pacific. Products are sold through department stores, travel retail, multibrand specialty beauty retailers, brand-dedicated freestanding stores, e-commerce, salons and spas, and perfumeries.
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