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The most recent trading session ended with e.l.f. Beauty (ELF) standing at $54.93, reflecting a -0.16% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 5.98% for the day. Elsewhere, the Dow saw a downswing of 5.5%, while the tech-heavy Nasdaq depreciated by 5.82%.
The cosmetics company's stock has dropped by 14.59% in the past month, falling short of the Consumer Staples sector's gain of 6.06% and the S&P 500's loss of 7.66%.
The upcoming earnings release of e.l.f. Beauty will be of great interest to investors. The company's upcoming EPS is projected at $0.74, signifying a 39.62% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $327.83 million, showing a 2.08% escalation compared to the year-ago quarter.
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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 1.4% lower within the past month. e.l.f. Beauty presently features a Zacks Rank of #4 (Sell).
Investors should also note e.l.f. Beauty's current valuation metrics, including its Forward P/E ratio of 15.3. This indicates a premium in contrast to its industry's Forward P/E of 13.93.
One should further note that ELF currently holds a PEG ratio of 3.35. 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. Cosmetics stocks are, on average, holding a PEG ratio of 1.2 based on yesterday's closing prices.
The Cosmetics industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.