e.l.f. Beauty (ELF) ended the recent trading session at $72.25, demonstrating a -3.79% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.9%.
Shares of the cosmetics company witnessed a gain of 17.36% over the previous month, beating the performance of the Consumer Staples sector with its loss of 0.78%, and the S&P 500's gain of 1.27%.
The upcoming earnings release of e.l.f. Beauty will be of great interest to investors. 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 full year, the Zacks Consensus Estimates are projecting earnings of $3.31 per share and revenue of $1.86 billion, which would represent changes of +5.75% and +13.64%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for e.l.f Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. As of now, e.l.f. Beauty holds a Zacks Rank of #3 (Hold).
In the context of valuation, e.l.f. Beauty is at present trading with a Forward P/E ratio of 22.68. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 22.68.
Also, we should mention that ELF has a PEG ratio of 2.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Cosmetics industry stood at 0.68 at the close of the market yesterday.
The Cosmetics industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 17% 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.
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).