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e.l.f. Beauty (ELF) Increases Despite Market Slip: Here's What You Need to Know

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In the latest trading session, e.l.f. Beauty (ELF - Free Report) closed at $146.11, marking a +1.98% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.1%. Elsewhere, the Dow saw an upswing of 0.57%, while the tech-heavy Nasdaq depreciated by 0.33%.

Heading into today, shares of the cosmetics company had gained 19.57% over the past month, outpacing the Consumer Staples sector's loss of 2.31% and the S&P 500's gain of 2.57%.

The investment community will be paying close attention to the earnings performance of e.l.f. Beauty in its upcoming release. In that report, analysts expect e.l.f. Beauty to post earnings of $0.61 per share. This would mark a year-over-year decline of 20.78%. Meanwhile, our latest consensus estimate is calling for revenue of $368.95 million, up 22.54% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.54 per share and revenue of $1.65 billion. These totals would mark changes of +4.42% and +25.97%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for e.l.f Beauty. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate has shifted 1.3% 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 40.48. This indicates a premium in contrast to its industry's Forward P/E of 15.67.

We can additionally observe that ELF currently boasts a PEG ratio of 2.63. 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. The Cosmetics industry had an average PEG ratio of 1.42 as trading concluded yesterday.

The Cosmetics industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 206, this industry ranks in the bottom 17% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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