e.l.f. Beauty (ELF) ended the recent trading session at $127.42, demonstrating a -6.94% change from the preceding day's closing price. This change lagged the S&P 500's 1.07% gain on the day. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 1.37%.
Coming into today, shares of the cosmetics company had lost 2.17% in the past month. In that same time, the Consumer Staples sector lost 1.23%, while the S&P 500 gained 1.08%.
The upcoming earnings release of e.l.f. Beauty will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 24.68% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $369.5 million, indicating a 22.72% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.53 per share and a revenue of $1.65 billion, demonstrating changes of +4.13% and +25.61%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for e.l.f Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. At present, e.l.f. Beauty boasts 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 38.79. This signifies a premium in comparison to the average Forward P/E of 16.05 for its industry.
Meanwhile, ELF's PEG ratio is currently 2.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Cosmetics industry held an average PEG ratio of 1.35.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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