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E.l.f. Beauty (ELF) Gains As Market Dips: What You Should Know

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e.l.f. Beauty (ELF - Free Report) closed at $55.48 in the latest trading session, marking a +1.84% move from the prior day. This move outpaced the S&P 500's daily loss of 0.41%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 6.67%.

Prior to today's trading, shares of the cosmetics company had lost 1.8% over the past month. This has lagged the Consumer Staples sector's gain of 0.78% and was narrower than the S&P 500's loss of 4.4% in that time.

Wall Street will be looking for positivity from e.l.f. Beauty as it approaches its next earnings report date. In that report, analysts expect e.l.f. Beauty to post earnings of $0.23 per share. This would mark a year-over-year decline of 4.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $121.06 million, up 23.38% from the year-ago period.

ELF's full-year Zacks Consensus Estimates are calling for earnings of $1.12 per share and revenue of $488.72 million. These results would represent year-over-year changes of +33.33% and +24.62%, respectively.

Investors should also note any recent changes to analyst estimates for e.l.f. Beauty. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. e.l.f. Beauty currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, e.l.f. Beauty currently has a Forward P/E ratio of 48.68. This valuation marks a premium compared to its industry's average Forward P/E of 29.02.

Also, we should mention that ELF has a PEG ratio of 1.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ELF's industry had an average PEG ratio of 1.93 as of yesterday's close.

The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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