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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 $53.64 in the latest trading session, marking a +0.04% move from the prior day. This change outpaced the S&P 500's 1.56% loss on the day. Meanwhile, the Dow lost 1.81%, and the Nasdaq, a tech-heavy index, lost 4.66%.

Prior to today's trading, shares of the cosmetics company had lost 0.3% over the past month. This has lagged the Consumer Staples sector's gain of 1.52% and the S&P 500's gain of 3.82% in that time.

e.l.f. Beauty will be looking to display strength as it nears its next earnings release, which is expected to be February 1, 2023. In that report, analysts expect e.l.f. Beauty to post earnings of $0.23 per share. This would mark a year-over-year decline of 4.17%. Meanwhile, our latest consensus estimate is calling for revenue of $121.45 million, up 23.78% from the prior-year quarter.

ELF's full-year Zacks Consensus Estimates are calling for earnings of $1.12 per share and revenue of $489.45 million. These results would represent year-over-year changes of +33.33% and +24.81%, respectively.

Investors should also note any recent changes to analyst estimates for e.l.f. Beauty. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. e.l.f. Beauty is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, e.l.f. Beauty currently has a Forward P/E ratio of 47.84. For comparison, its industry has an average Forward P/E of 33.7, which means e.l.f. Beauty is trading at a premium to the group.

Meanwhile, ELF's PEG ratio is currently 1.79. 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. Cosmetics stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.

The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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