Estée Lauder: Relief In Q3, But Valuation Is Expensive

The Estée Lauder Companies Inc. has rallied 34% in the past year, but I remain cautious due to macro headwinds and full valuation. PRGP restructuring is driving margin expansion, with adjusted operating margins up 360bps and annual cost savings targeted at $1 billion. China and luxury segments are rebounding, but EL's heavy reliance on Asian travel spending exposes it to energy price shocks and macro risks.