In the latest trading session, e.l.f. Beauty (ELF) closed at $61.98, marking a +1.36% move from the previous day. This change outpaced the S&P 500's 0.06% gain on the day. On the other hand, the Dow registered a gain of 0.28%, and the technology-centric Nasdaq decreased by 0.1%.
The the stock of cosmetics company has fallen by 5.68% in the past month, lagging the Consumer Staples sector's gain of 2.15% and the S&P 500's loss of 4.29%.
Investors will be eagerly watching for the performance of e.l.f. Beauty in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.74, reflecting a 39.62% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $328.04 million, reflecting a 2.15% rise from the equivalent quarter last year.
Any recent changes to analyst estimates for e.l.f. Beauty should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.94% lower within the past month. e.l.f. Beauty is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note e.l.f. Beauty's current valuation metrics, including its Forward P/E ratio of 17.33. This expresses a premium compared to the average Forward P/E of 13.58 of its industry.
It is also worth noting that ELF currently has a PEG ratio of 3.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Cosmetics industry had an average PEG ratio of 0.77.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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