In the latest trading session, e.l.f. Beauty (ELF) closed at $74.54, marking a -1.06% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 1.09%, and the tech-heavy Nasdaq gained 0.2%.
Shares of the cosmetics company have appreciated by 35.33% over the course of the past month, outperforming the Consumer Staples sector's gain of 4%, and the S&P 500's gain of 1.64%.
The investment community will be closely monitoring the performance of e.l.f. Beauty in its forthcoming earnings report. The company is predicted to post an EPS of $0.73, indicating a 17.98% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $424.55 million, indicating a 20.02% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.31 per share and a revenue of $1.86 billion, signifying shifts of +5.75% and +13.64%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for e.l.f Beauty. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 0.37% higher. Right now, e.l.f. Beauty possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that e.l.f. Beauty has a Forward P/E ratio of 22.75 right now. For comparison, its industry has an average Forward P/E of 22.75, which means e.l.f. Beauty is trading at no noticeable deviation to the group.
Investors should also note that ELF has a PEG ratio of 2.14 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Cosmetics industry stood at 0.7 at the close of the market yesterday.
The Cosmetics industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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).