Why Estee Lauder Rallied This Week

Estee Lauder stock rallied 11.8% this week after reporting fiscal Q4 earnings that beat analyst expectations with 6.5% revenue growth and 333% EPS growth. The company's turnaround plan is gaining traction with $1.2 billion in cost cuts achieved and improved margins. Management guided for 3-5% organic revenue growth and 12.7-13.5% operating margins for the upcoming year. However, despite improvements, the stock remains down 70% over five years and trades at 30x forward earnings, suggesting it's a 'hold' rather than a 'buy' at current levels.