The most recent trading session ended with e.l.f. Beauty (ELF) standing at $77.15, reflecting a -1.36% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow experienced a drop of 0.21%, and the technology-dominated Nasdaq saw an increase of 0.72%.
Prior to today's trading, shares of the cosmetics company had gained 49.91% over the past month. This has outpaced the Consumer Staples sector's loss of 1.24% and the S&P 500's gain of 9.86% in that time.
Analysts and investors alike will be keeping a close eye on the performance of e.l.f. Beauty in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.73, marking a 37.74% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $327.27 million, indicating a 1.91% upward movement from the same quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for e.l.f. Beauty. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.46% decrease. Currently, e.l.f. Beauty is carrying a Zacks Rank of #5 (Strong Sell).
In the context of valuation, e.l.f. Beauty is at present trading with a Forward P/E ratio of 22.89. Its industry sports an average Forward P/E of 16.66, so one might conclude that e.l.f. Beauty is trading at a premium comparatively.
One should further note that ELF currently holds a PEG ratio of 5.01. 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. By the end of yesterday's trading, the Cosmetics industry had an average PEG ratio of 1.26.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 24% 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.
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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