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

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e.l.f. Beauty (ELF - Free Report) closed the most recent trading day at $136.04, moving -1.31% from the previous trading session. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.09%.

Heading into today, shares of the cosmetics company had gained 3.48% over the past month, outpacing the Consumer Staples sector's loss of 4.48% and the S&P 500's loss of 1.27% in that time.

Wall Street will be looking for positivity from e.l.f. Beauty as it approaches its next earnings report date. The company is expected to report EPS of $0.58, up 61.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $196.08 million, up 60.26% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.37 per share and revenue of $817.55 million. These totals would mark changes of +42.77% and +41.24%, respectively, from last year.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. e.l.f. Beauty currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that e.l.f. Beauty has a Forward P/E ratio of 58.23 right now. This represents a premium compared to its industry's average Forward P/E of 30.5.

Meanwhile, ELF's PEG ratio is currently 2.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Cosmetics stocks are, on average, holding a PEG ratio of 2.89 based on yesterday's closing prices.

The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 19% 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.

To follow ELF in the coming trading sessions, be sure to utilize Zacks.com.


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