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e.l.f. Beauty (ELF) Beats Stock Market Upswing: What Investors Need to Know

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In the latest close session, e.l.f. Beauty (ELF - Free Report) was up +1.54% at $108.51. The stock outperformed the S&P 500, which registered a daily gain of 0.32%. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.26%.

The stock of cosmetics company has fallen by 14.9% in the past month, lagging the Consumer Staples sector's loss of 2.09% and the S&P 500's gain of 4.51%.

Analysts and investors alike will be keeping a close eye on the performance of e.l.f. Beauty in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.85, signifying a 22.73% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $350.96 million, indicating a 8.16% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $3.66 per share and a revenue of $1.65 billion, demonstrating changes of +7.96% and +25.39%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for e.l.f Beauty. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, e.l.f. Beauty possesses a Zacks Rank of #3 (Hold).

Investors should also note e.l.f. Beauty's current valuation metrics, including its Forward P/E ratio of 29.19. This denotes a premium relative to the industry average Forward P/E of 19.54.

Meanwhile, ELF's PEG ratio is currently 1.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Cosmetics industry currently had an average PEG ratio of 0.8 as of yesterday's close.

The Cosmetics industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 9, this industry ranks in the top 4% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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