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E.l.f. Beauty (ELF) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, e.l.f. Beauty (ELF - Free Report) closed at $54, marking a -0.31% move from the previous day. This change lagged the S&P 500's daily gain of 1.19%. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 0.29%.
Prior to today's trading, shares of the cosmetics company had lost 0.57% over the past month. This has was narrower than the Consumer Staples sector's loss of 0.76% and lagged the S&P 500's gain of 4.06% in that time.
Wall Street will be looking for positivity from e.l.f. Beauty as it approaches its next earnings report date. This is expected to be February 1, 2023. The company is expected to report EPS of $0.23, down 4.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $121.48 million, up 23.81% from the year-ago period.
ELF's full-year Zacks Consensus Estimates are calling for earnings of $1.12 per share and revenue of $489.84 million. These results would represent year-over-year changes of +33.33% and +24.91%, respectively.
Any recent changes to analyst estimates for e.l.f. Beauty should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.26% higher within the past month. e.l.f. Beauty is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, e.l.f. Beauty currently has a Forward P/E ratio of 48.33. For comparison, its industry has an average Forward P/E of 33.03, which means e.l.f. Beauty is trading at a premium to the group.
Also, we should mention that ELF has a PEG ratio of 1.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ELF's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.