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E.l.f. Beauty (ELF) Gains As Market Dips: What You Should Know

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e.l.f. Beauty (ELF - Free Report) closed at $55.34 in the latest trading session, marking a +0.07% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.4%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 4.72%.

Heading into today, shares of the cosmetics company had gained 2.54% over the past month, outpacing the Consumer Staples sector's loss of 2.84% and the S&P 500's loss of 5.57% in that time.

Wall Street will be looking for positivity from e.l.f. Beauty as it approaches its next earnings report date. On that day, e.l.f. Beauty is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 4.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $121.06 million, up 23.38% from the year-ago period.

ELF's full-year Zacks Consensus Estimates are calling for earnings of $1.12 per share and revenue of $488.72 million. These results would represent year-over-year changes of +33.33% and +24.62%, respectively.

Investors should also note any recent changes to analyst estimates for e.l.f. Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. e.l.f. Beauty is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, e.l.f. Beauty is holding a Forward P/E ratio of 49.42. This valuation marks a premium compared to its industry's average Forward P/E of 29.51.

We can also see that ELF currently has a PEG ratio of 1.85. 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. ELF's industry had an average PEG ratio of 1.89 as of yesterday's close.

The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% of all 250+ industries.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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