Back to top

Image: Bigstock

e.l.f. Beauty (ELF) Soars 7.5%: Is Further Upside Left in the Stock?

Read MoreHide Full Article

e.l.f. Beauty (ELF - Free Report) shares soared 7.5% in the last trading session to close at $30.68. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.4% gain over the past four weeks.

e.l.f. Beauty has been benefiting from its focus on innovation, solid digital strategy and core value proposition. Solid consumption trends and pricing actions are also working well for the company. The company’s mass cosmetics category is encouraging. Management expects sales to grow 10-12% in fiscal 2023, including double-digit rise in each quarter.

This cosmetics company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of -14.8%. Revenues are expected to be $108.88 million, up 12.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For e.l.f. Beauty, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ELF going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

e.l.f. Beauty is part of the Zacks Cosmetics industry. Revlon (REV - Free Report) , another stock in the same industry, closed the last trading session 18.1% higher at $5.42. REV has returned 11.4% in the past month.

For Revlon, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.31. This represents a change of -29.7% from what the company reported a year ago. Revlon currently has a Zacks Rank of #3 (Hold).

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Revlon, Inc. (REV) - free report >>

e.l.f. Beauty (ELF) - free report >>

Published in