In the latest close session, e.l.f. Beauty (ELF) was up +1.65% at $64.54. The stock exceeded the S&P 500, which registered a loss of 0.1% for the day. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.43%.
Coming into today, shares of the cosmetics company had gained 17.29% in the past month. In that same time, the Consumer Staples sector lost 0.72%, while the S&P 500 lost 1.34%.
Investors will be eagerly watching for the performance of e.l.f. Beauty in its upcoming earnings disclosure. 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.
It is also important to note the recent changes to analyst estimates for e.l.f Beauty. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.98% decrease. e.l.f. Beauty presently features a Zacks Rank of #3 (Hold).
Investors should also note e.l.f. Beauty's current valuation metrics, including its Forward P/E ratio of 19.18. This signifies no noticeable deviation in comparison to the average Forward P/E of 19.18 for its industry.
We can additionally observe that ELF currently boasts a PEG ratio of 1.81. 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. As the market closed yesterday, the Cosmetics industry was having an average PEG ratio of 0.75.
The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% 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.
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).