In the latest trading session, e.l.f. Beauty (ELF) closed at $115.14, marking a +1.46% move from the previous day. This move outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq lost 0.02%.
The cosmetics company's stock has climbed by 16.05% in the past month, exceeding the Consumer Staples sector's gain of 4.52% and the S&P 500's gain of 0.67%.
The upcoming earnings release of e.l.f. Beauty will be of great interest to investors. It is anticipated that the company will report an EPS of $0.59, marking a 13.24% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $469.19 million, indicating a 36.42% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.66 per share and revenue of $1.97 billion, indicating changes of +16.93% and +20.33%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 past month, there's been a 0.57% rise in the Zacks Consensus EPS estimate. e.l.f. Beauty is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that e.l.f. Beauty has a Forward P/E ratio of 31.02 right now. Its industry sports an average Forward P/E of 27.97, so one might conclude that e.l.f. Beauty is trading at a premium comparatively.
It is also worth noting that ELF currently has a PEG ratio of 2.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Cosmetics industry had an average PEG ratio of 1.05 as trading concluded yesterday.
The Cosmetics industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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e.l.f. Beauty (ELF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).