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E.l.f. Beauty (ELF) Laps the Stock Market: Here's Why

e.l.f. Beauty (ELF) closed the most recent trading day at $200.44, moving +1.58% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.23%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.34%.

Coming into today, shares of the cosmetics company had gained 17.23% in the past month. In that same time, the Consumer Staples sector lost 3.57%, while the S&P 500 gained 3.96%.

The investment community will be closely monitoring the performance of e.l.f. Beauty in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.93, marking a 15.45% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $299.84 million, up 38.59% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.42 per share and revenue of $1.28 billion, which would represent changes of +7.55% and +25.49%, respectively, from the prior year.

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Investors should also pay attention to any latest changes in analyst estimates for e.l.f. Beauty. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.07% lower. e.l.f. Beauty is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that e.l.f. Beauty has a Forward P/E ratio of 57.63 right now. Its industry sports an average Forward P/E of 26.83, so one might conclude that e.l.f. Beauty is trading at a premium comparatively.

We can also see that ELF currently has a PEG ratio of 4.17. 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. By the end of yesterday's trading, the Cosmetics industry had an average PEG ratio of 3.47.

The Cosmetics industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 190, positioning it in the bottom 25% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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

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Zacks Investment Research