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

e.l.f. Beauty (ELF) closed at $89.57 in the latest trading session, marking a +1.24% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 6.09%.

Prior to today's trading, shares of the cosmetics company had gained 3.34% over the past month. This has outpaced the Consumer Staples sector's gain of 1.9% and the S&P 500's gain of 0.75% in that time.

Investors will be hoping for strength from e.l.f. Beauty as it approaches its next earnings release, which is expected to be May 24, 2023. In that report, analysts expect e.l.f. Beauty to post earnings of $0.19 per share. This would mark year-over-year growth of 46.15%. Our most recent consensus estimate is calling for quarterly revenue of $156.81 million, up 49.15% from the year-ago period.

Investors might also notice recent changes to analyst estimates for e.l.f. Beauty. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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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.

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 3.13% higher. e.l.f. Beauty is currently a Zacks Rank #2 (Buy).

Investors should also note e.l.f. Beauty's current valuation metrics, including its Forward P/E ratio of 54.55. This represents a premium compared to its industry's average Forward P/E of 34.5.

Meanwhile, ELF's PEG ratio is currently 1.71. 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. ELF's industry had an average PEG ratio of 2.09 as of yesterday's close.

The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% 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.

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

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e.l.f. Beauty (ELF) : Free Stock Analysis Report

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