Helen of Troy stock price predictions as FQ2 results beat Street estimates

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Oct 7, 2021
  • Helen of Troy stock on Thursday spiked nearly 7% after announcing solid FQ2 results.
  • The company reported its most recent quarterly results before markets opened, beating analyst expectations.
  • The stock trades at a reasonable forward P/E ratio of 17.88.

On Thursday, Helen of Troy Ltd (NASDAQ:HELE) shares surged nearly 7% after announcing its most recent quarterly results. The company reported its fiscal Q2 revenue and earnings before markets opened, beating analyst expectations.

HELE posted fiscal Q2 non-GAAP earnings per share of $2.65, beating the consensus Street estimate of $2.24. In addition, its GAAP EPS of $2.11 outperformed the average for analyst expectations by $0.35 per share, while the revenue of $475.22 million was ahead of estimates by $47.06 million, despite registering a Y/Y decline of 10.5%.

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Helen of Troy continues to trade in a choppy pattern formation, swinging to a net year-to-date gain of just 5.83%. Therefore, HELE seems to have more room to run before retesting this year’s highs of about $260 per share achieved on 27th January.

Is it time to buy HELE stock?

From an investment perspective, the Helen of Troy stock trades at a trailing 12-month P/E of 23.35 and a forward P/E of about 17.88. Therefore, value investors could find it as a good option for their portfolios.

Moreover, analysts expect the company’s earnings per share to grow by nearly 60% this year, before rising by a further 12.24% next year. As a result, growth investors could also find the stock exciting.

Therefore, with the stock up just 5.83% this year, thereby underperforming the S&P 500 index, which is up nearly 19%, it could be time to buy HELE shares.

Source – TradingView

The rebound looks far from over

Technically, HELE shares appear to have recently bounced off a key support level at about $216, before surging to trade above the 100-day moving average.

However, the stock is yet to hit overbought conditions, thus leaving room for more upward movement. Therefore, investors could target extended gains at $239.34, or higher at $249.01. On the other hand, $227.01 and $216.13 are crucial support zones.

Helen of Troy looks like a buy

In summary, although HELE shares surged nearly 7% on Thursday, the stock is far from reaching overbought conditions, thereby leaving room for more gains.

Moreover, HELE offers exciting short-term growth prospects at reasonable valuation multiples. It could be time to buy the stock.

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