Shares of the OXO parent company are down over 30% in 2022
Helen of Troy Limited (NASDAQ:HELE) is a global consumer products company that designs, develops, and markets brand-name home, outdoor, health, wellness, and beauty products. HELE offers products and solutions for their customers through a portfolio of well-recognized brands, including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, and Drybar.
Helen of Troy is set to report its fiscal first-quarter earnings tomorrow, July 7. Looking back at its past eight reports, HELE has managed a positive next-day return three of these times, including a 6% pop during its late-April earnings release. Regardless of direction, the security has averaged a post-earnings swing of 5% during this time period, which is slightly smaller than the 8.9% move the options pits are pricing in .
Short sellers are targeting HELE ahead of the event. Short interest rose 6.1% in the last reporting period, and now makes up 9.7% of the stock's available float. Meanwhile, analysts are split, with two saying "buy" or better, and two saying "hold."
The stock has lost roughly 27% in the past year, and 30.3% in 2022. HELE found a floor at the $150 level in late-June. What's more, the equity is looking to close above the 30-day moving average for the first time since mid-May.
The consumer products company offers a relatively slow growth rate, with estimates indicating 5.8% revenue growth and 5.5% earnings for fiscal 2023. In addition, HELE comes with a weak balance sheet. The business currently has $865.5 million in total debt and hold $33.38 million in cash on its balance sheet. Nonetheless, Helen of Troy stock provides a fair valuation at a forward price-earnings ratio of 12.85 and a price-sales ratio of 1.82, making it a fairly safe pick for investors’ portfolios.