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Bear of the Day: e.l.f. Beauty

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Key Takeaways

  • A growth cooldown has heavily impacted ELF shares.
  • The latest set of results caused a negative post-earnings reaction.
  • Once a high-flyer, shares are down 36% YTD.

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).

Zacks Investment Research
Image Source: Zacks Investment Research

In addition to a cloudy EPS outlook, the stock resides in the Zacks – Cosmetics industry, which is currently ranked in the bottom 11%. Let’s take a closer look at the company.

ELF Shares Face Post-Earnings Pressure

ELF shares have volatile in 2025, down roughly 36% 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.

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.

Zacks Investment Research
Image Source: Zacks Investment Research

As we can see above, while sales growth has remained broadly strong, the cooldown has been the bigger story here, helping explain the sharp drop in shares. Shares plunged following the latest set of results, erasing all YTD gains.

Zacks Investment Research
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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