In the latest trading session, e.l.f. Beauty (ELF) closed at $61.77, marking a +1.03% move from the previous day. The stock’s performance was behind the S&P 500’s daily gain of 2.51%. At the same time, the Dow added 2.85%, and the tech-heavy Nasdaq gained 2.8%.
Prior to today’s trading, shares of the cosmetics company had lost 24.04% lagged the Consumer Staples sector’s loss of 5.42% and the S&P 500’s loss of 1.66%.
Market participants will be closely following the financial results of e.l.f. Beauty in its upcoming release. The company’s upcoming EPS is projected at $0.3, signifying a 61.54% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $426.16 million, up 28.11% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.11 per share and revenue of $1.61 billion. These totals would mark changes of -8.26% and +22.83%, respectively, from last year.
It’s also important for investors to be aware of any recent modifications 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. e.l.f. Beauty currently has a Zacks Rank of #3 (Hold).
Investors should also note e.l.f. Beauty’s current valuation metrics, including its Forward P/E ratio of 16.43. This indicates a premium in contrast to its industry’s Forward P/E of 12.7.
It is also worth noting that ELF currently has a PEG ratio of 2.59. 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 average PEG ratio for the Cosmetics industry stood at 0.78 at the close of the market yesterday.
The Cosmetics industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 210, finds itself in the bottom 14% echelons of all 250+ industries.
