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e.l.f. Beauty (ELF) Outpaces Stock Market Gains: What You Should Know

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In the latest close session, e.l.f. Beauty (ELF - Free Report) was up +2.05% at $135.20. The stock outperformed the S&P 500, which registered a daily gain of 0.34%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.42%.

Prior to today's trading, shares of the cosmetics company had gained 5.48% outpaced the Consumer Staples sector's loss of 3.82% and the S&P 500's gain of 3.54%.

The investment community will be closely monitoring the performance of e.l.f. Beauty in its forthcoming earnings report. The company's upcoming EPS is projected at $0.59, signifying a 23.38% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $368.95 million, up 22.54% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.54 per share and revenue of $1.65 billion, indicating changes of +4.42% and +25.97%, respectively, compared to the previous year.

Any recent changes to analyst estimates for e.l.f. Beauty should also be noted by investors. 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.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 witnessed a 1.3% increase. Currently, e.l.f. Beauty is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, e.l.f. Beauty is currently being traded at a Forward P/E ratio of 37.46. This denotes a premium relative to the industry average Forward P/E of 15.33.

One should further note that ELF currently holds a PEG ratio of 2.32. 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. As of the close of trade yesterday, the Cosmetics industry held an average PEG ratio of 1.32.

The Cosmetics industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 197, this industry ranks in the bottom 21% of all industries, numbering over 250.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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