Back to top

Image: Bigstock

E.l.f. Beauty (ELF) Beats Stock Market Upswing: What Investors Need to Know

Read MoreHide Full Article

In the latest trading session, e.l.f. Beauty (ELF - Free Report) closed at $138.02, marking a +0.55% move from the previous day. This move outpaced the S&P 500's daily gain of 0.18%. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq increased by 0.1%.

Shares of the cosmetics company witnessed a gain of 8.17% over the previous month, beating the performance of the Consumer Staples sector with its gain of 1.42% and the S&P 500's gain of 2.75%.

Market participants will be closely following the financial results of e.l.f. Beauty in its upcoming release. The company is predicted to post an EPS of $0.53, indicating a 10.42% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $230.63 million, indicating a 57.39% growth compared to the corresponding quarter of the prior year.

ELF's full-year Zacks Consensus Estimates are calling for earnings of $2.70 per share and revenue of $913.81 million. These results would represent year-over-year changes of +62.65% and +57.87%, respectively.

Investors might also notice recent changes to analyst estimates for e.l.f. Beauty. Recent revisions tend to reflect the latest 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Currently, e.l.f. Beauty is carrying a Zacks Rank of #2 (Buy).

Investors should also note e.l.f. Beauty's current valuation metrics, including its Forward P/E ratio of 50.93. Its industry sports an average Forward P/E of 27.26, so one might conclude that e.l.f. Beauty is trading at a premium comparatively.

Meanwhile, ELF's PEG ratio is currently 1.77. 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 2.59 as trading concluded yesterday.

The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


e.l.f. Beauty (ELF) - free report >>

Published in