In the latest trading session, e.l.f. Beauty (ELF) closed at $115.37, marking a -1.95% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.28%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.09%.
The stock of cosmetics company has fallen by 5.51% in the past month, lagging the Consumer Staples sector's loss of 1.44% and the S&P 500's gain of 4.37%.
Analysts and investors alike will be keeping a close eye on the performance of e.l.f. Beauty in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.85, showcasing a 22.73% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $350.96 million, indicating a 8.16% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.66 per share and revenue of $1.65 billion, which would represent changes of +7.96% and +25.39%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for e.l.f Beauty. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.16% rise in the Zacks Consensus EPS estimate. Currently, e.l.f. Beauty is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, e.l.f. Beauty is currently being traded at a Forward P/E ratio of 32.14. This signifies a premium in comparison to the average Forward P/E of 21.07 for its industry.
One should further note that ELF currently holds a PEG ratio of 2.07. 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. The Cosmetics was holding an average PEG ratio of 1.23 at yesterday's closing price.
The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 9, putting it in the top 4% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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e.l.f. Beauty (ELF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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