Jim Cramer on e.l.f.: "I Think We Have to Wait Till it Comes Down"

e.l.f. Beauty, Inc. (NYSE:ELF) is one of the stocks Jim Cramer weighed in on. Noting its recent surge in value, a caller inquired about the stock but voiced concern about potential risks related to China and asked whether it is too late to buy in. In response, Cramer said:

“I would not worry about the China scare because it’s what I call baked into the stock. What I would worry about is the parabolic move we had today. I mean, ELF is up nine. I think we have to wait till it comes down. I’m thrilled you’re in the club, but I know if I were in the club right now and we owned ELF, I would say trim, don’t buy. That’s just a parabolic move, and that signals that it’s up too much.”

e.l.f. Beauty, Inc. (NYSE:ELF) develops and markets cosmetics and skincare products under brands such as e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare.

While we acknowledge the potential of ELF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.