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e.l.f. Beauty (ELF) Falls More Steeply Than Broader Market: What Investors Need to Know

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e.l.f. Beauty (ELF - Free Report) ended the recent trading session at $119.85, demonstrating a -1.96% change from the preceding day's closing price. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.51%.

Coming into today, shares of the cosmetics company had gained 47.67% in the past month. In that same time, the Consumer Staples sector lost 1.34%, while the S&P 500 gained 0.45%.

The upcoming earnings release of e.l.f. Beauty will be of great interest to investors. In that report, analysts expect e.l.f. Beauty to post earnings of $0.87 per share. This would mark a year-over-year decline of 20.91%. Alongside, our most recent consensus estimate is anticipating revenue of $350.96 million, indicating a 8.16% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.66 per share and a revenue of $1.65 billion, representing changes of +7.96% and +25.39%, respectively, from the prior year.

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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.48% upward. As of now, e.l.f. Beauty holds a Zacks Rank of #3 (Hold).

Digging into valuation, e.l.f. Beauty currently has a Forward P/E ratio of 33.44. This represents a premium compared to its industry average Forward P/E of 16.56.

It's also important to note that ELF currently trades at a PEG ratio of 2.02. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Cosmetics industry stood at 1.12 at the close of the market yesterday.

The Cosmetics industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 34% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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