This makeup giant is 'quite undervalued' and making a turnaround, says options trader Tony Zhang

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Tony Zhang says with its strong expected future growth and high margins, EL is quite undervalued.

We've seen a noticeable uptick in volume and interest in Estee Lauder , after struggling significantly for the last two years to formulate a turnaround. Has the global makeup giant finally bottomed and proven that its business is investable again? In my opinion, with its strong expected future growth and high margins, EL is quite undervalued and offers an attractive risk/reward for investors to add exposure now in your portfolio. I'll describe a way to do that using options.

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