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e.l.f. Beauty (ELF - Free Report) is a cosmetic company that provides makeup, lip products, nail products, cosmetics sets/kits, beauty tools, brushes, and other similar accessories. Analysts have taken a bearish stance concerning the company’s EPS outlook, landing it into an unfavorable Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Let’s take a closer look at the company.
e.l.f. Beauty
ELF shares have been decimated over the past year, down more than 60% and widely underperforming relative to the S&P 500. Quarterly results haven’t been enough to perk shares up, with a growth cooldown driving the negative sentiment.
Image Source: Zacks Investment Research
The growth cooldown can be seen in the chart below, where the values tracked reflect the YoY % change in sales. Please note that these are not actual sales numbers.
Image Source: Zacks Investment Research
As we can see above, while sales growth is still strong, the cooldown has been the bigger story here, helping explain the sharp drop in shares. But while the growth has slowed, the margins picture has largely remained highly-positive, as shown below.
Image Source: Zacks Investment Research
Bottom Line
Analysts' negative earnings estimate revisions, resulting from a growth cooldown, paint a challenging picture for the company’s shares in the near term.
e.l.f. Beauty (ELF - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy). These stocks sport a notably stronger earnings outlook and the potential to deliver explosive gains in the near term.
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Bear of the Day: e.l.f. Beauty (ELF)
e.l.f. Beauty (ELF - Free Report) is a cosmetic company that provides makeup, lip products, nail products, cosmetics sets/kits, beauty tools, brushes, and other similar accessories. Analysts have taken a bearish stance concerning the company’s EPS outlook, landing it into an unfavorable Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Let’s take a closer look at the company.
e.l.f. Beauty
ELF shares have been decimated over the past year, down more than 60% and widely underperforming relative to the S&P 500. Quarterly results haven’t been enough to perk shares up, with a growth cooldown driving the negative sentiment.
Image Source: Zacks Investment Research
The growth cooldown can be seen in the chart below, where the values tracked reflect the YoY % change in sales. Please note that these are not actual sales numbers.
Image Source: Zacks Investment Research
As we can see above, while sales growth is still strong, the cooldown has been the bigger story here, helping explain the sharp drop in shares. But while the growth has slowed, the margins picture has largely remained highly-positive, as shown below.
Image Source: Zacks Investment Research
Bottom Line
Analysts' negative earnings estimate revisions, resulting from a growth cooldown, paint a challenging picture for the company’s shares in the near term.
e.l.f. Beauty (ELF - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy). These stocks sport a notably stronger earnings outlook and the potential to deliver explosive gains in the near term.