In the latest trading session, e.l.f. Beauty (ELF) closed at $104.51, marking a -1.59% move from the previous day. This move lagged the S&P 500's daily gain of 0.12%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 4.09%.
Prior to today's trading, shares of the cosmetics company had gained 18.57% over the past month. This has outpaced the Consumer Staples sector's loss of 4.6% and the S&P 500's gain of 3.98% in that time.
Investors will be hoping for strength from e.l.f. Beauty as it approaches its next earnings release. The company is expected to report EPS of $0.56, up 43.59% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $184.51 million, up 50.5% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.78 per share and revenue of $723.86 million, which would represent changes of +7.23% and +25.05%, respectively, from the prior year.
Any recent changes to analyst estimates for e.l.f. Beauty should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 12% higher. e.l.f. Beauty currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that e.l.f. Beauty has a Forward P/E ratio of 59.54 right now. This represents a premium compared to its industry's average Forward P/E of 32.45.
Meanwhile, ELF's PEG ratio is currently 4.67. 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. The Cosmetics was holding an average PEG ratio of 2.24 at yesterday's closing price.
The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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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