In the latest close session, e.l.f. Beauty (ELF) was up +1.16% at $130.98. The stock's change was more than the S&P 500's daily gain of 0.83%. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, added 1.02%.
The cosmetics company's shares have seen an increase of 10.44% over the last month, surpassing the Consumer Staples sector's loss of 0.61% and the S&P 500's gain of 4.99%.
The investment community will be closely monitoring the performance of e.l.f. Beauty in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.85, marking a 22.73% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $350.96 million, indicating a 8.16% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.66 per share and a revenue of $1.65 billion, demonstrating changes of +7.96% and +25.39%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for e.l.f Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.02% upward. e.l.f. Beauty presently features a Zacks Rank of #3 (Hold).
Looking at valuation, e.l.f. Beauty is presently trading at a Forward P/E ratio of 35.37. This valuation marks a premium compared to its industry average Forward P/E of 22.8.
It's also important to note that ELF currently trades at a PEG ratio of 2.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Cosmetics stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.
The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 63, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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