In the latest close session, e.l.f. Beauty (ELF) was up +1.39% at $69.86. The stock's performance was ahead of the S&P 500's daily gain of 0.8%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 1.6%.
Prior to today's trading, shares of the cosmetics company had lost 7.72% lagged the Consumer Staples sector's loss of 2.45% and the S&P 500's gain of 5.15%.
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 $0.3, marking a 61.54% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $426.16 million, indicating a 28.11% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.11 per share and a revenue of $1.61 billion, representing changes of -8.26% and +22.83%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for e.l.f Beauty. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. Right now, e.l.f. Beauty possesses a Zacks Rank of #3 (Hold).
In terms of valuation, e.l.f. Beauty is currently trading at a Forward P/E ratio of 18.42. For comparison, its industry has an average Forward P/E of 14.81, which means e.l.f. Beauty is trading at a premium to the group.
We can additionally observe that ELF currently boasts a PEG ratio of 2.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ELF's industry had an average PEG ratio of 0.87 as of yesterday's close.
The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Report
This article originally published on Zacks Investment Research (zacks.com).