In the latest close session, e.l.f. Beauty (ELF) was up +2.58% at $137.91. The stock outpaced the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 1.36%, and the Nasdaq, a tech-heavy index, added 0.72%.
Coming into today, shares of the cosmetics company had gained 9.37% in the past month. In that same time, the Consumer Staples sector lost 1.7%, while the S&P 500 gained 2.38%.
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 $0.61 per share, which would represent a year-over-year decline of 20.78%. Meanwhile, the latest consensus estimate predicts the revenue to be $368.95 million, indicating a 22.54% increase compared to the same quarter of the previous year.
ELF's full-year Zacks Consensus Estimates are calling for earnings of $3.54 per share and revenue of $1.65 billion. These results would represent year-over-year changes of +4.42% and +25.97%, respectively.
It is also important to note the 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.
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, 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 shifted 1.3% upward. As of now, e.l.f. Beauty holds a Zacks Rank of #3 (Hold).
From a valuation perspective, e.l.f. Beauty is currently exchanging hands at a Forward P/E ratio of 37.99. For comparison, its industry has an average Forward P/E of 15.97, which means e.l.f. Beauty is trading at a premium to the group.
Investors should also note that ELF has a PEG ratio of 2.47 right now. 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. Cosmetics stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Cosmetics industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 208, this industry ranks in the bottom 16% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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