Helen of Troy Bets on AI: Will Its Execution Drive Brand Momentum?

Zacks Zacks Öffnen unter Zacks
Helen of Troy Bets on AI: Will Its Execution Drive Brand Momentum?

Helen of Troy Limited HELE is making artificial intelligence a bigger part of its operational playbook. The consumer products company is working to improve execution and restore growth momentum. Management highlighted AI as a core component of its modernization efforts during the fourth quarter of fiscal 2026 earnings call, positioning the technology as a tool to improve efficiency, streamline workflows and accelerate decision-making across the organization. 

The company is investing in AI-enabled solutions alongside broader digital upgrades, advanced planning systems and automation initiatives. Helen of Troy believes these investments can strengthen supply-chain visibility, improve forecasting accuracy and support faster responses to changing consumer demand patterns. The company is also training employees to automate routine tasks so teams can focus more on innovation, storytelling and brand-building activities. 

Importantly, the AI push is not being framed as a standalone technology initiative. Instead, management is positioning it as part of a larger effort to create a more agile, consumer-focused operating model. The company noted that faster execution and improved responsiveness are becoming increasingly important as discretionary spending remains pressured and retailers maintain cautious inventory strategies. 

Helen of Troy’s emphasis on AI also comes at a time when the company is managing tariff pressures, elevated promotional activity and operational complexity. Better forecasting and inventory planning could become especially valuable as the company continues diversifying its manufacturing footprint and reducing exposure to China tariffs.

While the financial benefits from these AI initiatives may take time to materialize, the company’s latest commentary suggests management views digital capabilities and workflow automation as critical building blocks in improving execution discipline and long-term operational efficiency.

Helen of Troy’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #2 (Buy) company have gained 34.3% in the past month compared with the broader Consumer Staples sector and the industry’s growth of 3.9% and 3.1%, respectively. HELE has also outperformed the S&P 500 index’s growth of 6.8% during the same period.

HELE Stock's Past Month Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Is Helen of Troy a Value Play Stock?

HELE trades at a forward price-to-earnings ratio of 6.54X, notably below the industry and the sector’s average of 21.28X and 16.81X, respectively. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.

HELE P/E Ratio (Forward 12 Months)

Zacks Investment Research
Image Source: Zacks Investment Research

Other Top-Ranked Stocks

The Estee Lauder Companies Inc. EL manufactures, markets and sells skin care, makeup, fragrance and hair care products worldwide. It holds a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

The Zacks Consensus Estimate for Estee Lauder’s current financial-year sales and earnings indicates growth of 4.5% and 58.9%, respectively, from the prior-year reported levels. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.

Darling Ingredients Inc. DAR develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients. It currently has a Zacks Rank #2. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.

The Zacks Consensus Estimate for Darling Ingredients’ current fiscal-year sales and earnings indicates growth of 10.3% and 575%, respectively, from the prior-year reported levels.

Smithfield Foods, Inc. SFD produces packaged meats and fresh pork in the United States and internationally. It carries a Zacks Rank #2 at present. SFD delivered a trailing four-quarter earnings surprise of 12%, on average. 

The Zacks Consensus Estimate for Smithfield Foods’ current fiscal-year sales and earnings indicates growth of 1.3% and 7.5%, respectively, from the prior-year reported levels.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

See Stocks Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


 
The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report
 
Darling Ingredients Inc. (DAR): Free Stock Analysis Report
 
Smithfield Foods, Inc. (SFD): Free Stock Analysis Report
 
Helen of Troy Limited (HELE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research