Back to top

Image: Bigstock

E.l.f. Beauty (ELF) Stock Slides as Market Rises: Facts to Know Before You Trade

Read MoreHide Full Article

e.l.f. Beauty (ELF - Free Report) closed the latest trading day at $111.42, indicating a -0.37% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.25%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.56%.

Coming into today, shares of the cosmetics company had lost 28.36% in the past month. In that same time, the Consumer Staples sector gained 1.17%, while the S&P 500 gained 1.65%.

Analysts and investors alike will be keeping a close eye on the performance of e.l.f. Beauty in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.47, signifying a 42.68% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $291.3 million, up 35.17% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.53 per share and a revenue of $1.32 billion, representing changes of +11.01% and +29.18%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for e.l.f. Beauty. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. e.l.f. Beauty is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, e.l.f. Beauty is currently trading at a Forward P/E ratio of 31.65. This denotes a premium relative to the industry's average Forward P/E of 25.56.

Also, we should mention that ELF has a PEG ratio of 1.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ELF's industry had an average PEG ratio of 1.37 as of yesterday's close.

The Cosmetics industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 38% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


e.l.f. Beauty (ELF) - free report >>

Published in