e.l.f. Beauty (ELF) ended the recent trading session at $61.16, demonstrating a -1.83% change from the preceding day’s closing price. This change lagged the S&P 500’s 0.11% gain on the day. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.18%.
The cosmetics company’s stock has dropped by 22.42% in the past month, falling short of the Consumer Staples sector’s loss of 11.58% and the S&P 500’s loss of 4.28%.
Investors will be eagerly watching for the performance of e.l.f. Beauty in its upcoming earnings disclosure. On that day, e.l.f. Beauty is projected to report earnings of $0.3 per share, which would represent a year-over-year decline of 61.54%. Simultaneously, our latest consensus estimate expects the revenue to be $426.16 million, showing a 28.11% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.11 per share and a revenue of $1.61 billion, demonstrating changes of -8.26% and +22.83%, respectively, from the preceding year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for e.l.f Beauty. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. e.l.f. Beauty currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that e.l.f. Beauty has a Forward P/E ratio of 16.74 right now. This expresses a premium compared to the average Forward P/E of 12.83 of its industry.
Investors should also note that ELF has a PEG ratio of 2.64 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Cosmetics industry currently had an average PEG ratio of 0.79 as of yesterday’s close.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 13% of all 250+ industries.
