Rotation Trade Sends Consumer Stock Soaring

A rotation trade has pushed a consumer stock to new highs, prompting CNBC Investing Club members to take a closer look at the company.

A rotation trade has pushed a consumer stock to new highs, prompting CNBC Investing Club members to take a closer look at the company.

The stock in question is Estee Lauder (EL), a leading manufacturer of prestige beauty products. EL's stock has been on a tear in recent months, climbing over 20% since the beginning of the year.

Rotation Trade Sends Consumer Stock Soaring

The rally in EL's stock is being driven by a number of factors, including strong demand for its products, a favorable economic backdrop, and a rotation out of growth stocks into value stocks.

EL is a well-established company with a strong track record of growth. The company has a diverse portfolio of brands, including Estee Lauder, Clinique, and MAC Cosmetics. EL's products are sold in over 150 countries and territories around the world.

In recent years, EL has been benefiting from strong demand for its products in emerging markets. The company has also been investing heavily in its online presence, which is helping to drive growth in e-commerce sales.

The economic backdrop is also favorable for EL. The global economy is growing, and consumer spending is on the rise. This is creating a tailwind for EL's business.

In addition, EL is benefiting from a rotation out of growth stocks into value stocks. Growth stocks are stocks of companies that are expected to grow rapidly in the future. Value stocks are stocks of companies that are trading at a discount to their intrinsic value.

EL is a value stock. The company is trading at a forward price-to-earnings ratio of 20, which is below the average for the S&P 500.

The Investing Club is bullish on EL. The company has a strong track record of growth, a favorable economic backdrop, and a rotation out of growth stocks into value stocks. The Investing Club believes that EL's stock is a good value and has the potential to continue to climb in the future.

The Investing Club is a group of investors who share their investment ideas and strategies. The Club is led by Jim Cramer, a CNBC host and former hedge fund manager.

The Investing Club is bullish on EL. The company has a strong track record of growth, a favorable economic backdrop, and a rotation out of growth stocks into value stocks. The Investing Club believes that EL's stock is a good value and has the potential to continue to climb in the future.

**Disclosure:** The Investing Club is long EL.