Amazon and Netflix are two companies changing the landscape of business. They are true economy disrupters. The stocks of these companies thrive on the concept of a total addressable market (TAM). Investors take an aspirational view as Amazon and Netflix hold the promise of servicing many more customers than they currently have.
Estee Lauder is another company that is flourishing in the market right now and also has an attractive TAM. Most recently, they reported an 18% gain in sales and a 30% gain in earnings.
Lauder is no high flying tech stock, however. It is a 76-year-old company in a business that has been around since ancient times.
Lauder’s presence spans far and wide. Along with its namesake, brands include Bobbi Brown, Clinique, Lab, Mac, Donna Karan, Jo Malone, and Aveda.
We first invested in this company last August near 100 per share and it is currently above 150 per share.
Following the most recent earnings report, which was stellar, the shares dropped 15% on concerns of lower mall traffic and declining margins. Since then, it has, I hope, regained its luster.
Their story is below:
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