We desperately want to be seen.
Covid-19 has locked us in our homes. The ongoing reality is that we’re working from home, schooling from home, and basically existing on the couch watching Netflix. The isolation is not natural and it’s wearing on us. Because we desperately crave social interaction, companies like Zoom (ZM) have exploded in value. Everyone is ‘zooming’ and dreaming of a post-covid life. (I’m a ZM fan, but waiting for a new entry)
Despite the fact that we’re socially distancing, the story I’m buying into is that you have to look good NOW and get ready to look good later. Steps in Estee Lauder. Let’s be clear, EL has not benefited from the pandemic (stores have closed and employees have been laid off). However, EL has also not been destroyed and I believe the future is bright. People will not give up on skincare and looking good. Therefore, I bought EL ahead of earnings and will try to hold for the long run. ULTA is the other play here.
Worth noting, EL has received 3 upgrades this month with $233 and $240 targets.
I currently have a 192 stop.