Estée Lauder Companies Stock News

Since hitting an all-time high in 2022, Estée Lauder's (EL -0.51%) stock has basically been crushed. The shares have lost roughly 80% of their value in two years.

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Many of Estée Lauder's (EL 0.44%) perfumes and cosmetics make for ideal holiday gifts for folks who appreciate such products. Is the storied company's stock also a great buy for the season?

It's been a disappointing year for Estée Lauder (EL -0.46%) investors, as the cosmetics maker's stock is down almost 50% in 2024. Any time a market leader's stock drops significantly, it's worth investigating to see whether it's a possible bounce-back candidate.

Despite an almost 50% decline in Estée Lauder stock (NYSE: EL) since the beginning of the year, at the current price of $75 per share, we believe the company could face a significant downside. Why is that?

At first glance, The Estée Lauder Companies (EL -0.51%) seems like a simple business.

Estée Lauder Companies (EL -0.96%) recently cut its dividend, blaming challenges in the "complex prestige beauty landscape," especially in China and Asia's travel retail markets. The announcement in late October didn't go over well with the stock market, sending the company's shares down 11% since then.

Dividend stocks can be attractive options for long-term investors, in part, because of the recurring income they can generate. But investors need to remember that dividend payouts aren't a guarantee, regardless of a company's track record of distributions.