e.l.f. Beauty (ELF) Stock Jumps 6%: Will It Continue to Soar?
e.l.f. Beauty (ELF) shares rallied 6% in the last trading session to close at $39.74. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.8% loss over the past four weeks.
e.l.f. Beauty has been benefiting from its growing market share. Focus on its core strengths like innovation and capacity to attract consumers are also working well for the company. Encouragingly, management raised its fiscal 2023 guidance, on its last earnings call.
This cosmetics company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $105 million, up 14.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For e.l.f. Beauty, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ELF going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
e.l.f. Beauty is part of the Zacks Cosmetics industry. European Wax Center, Inc. (EWCZ), another stock in the same industry, closed the last trading session 6.9% lower at $15.81. EWCZ has returned -17.1% in the past month.
For European Wax Center, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. This represents a change of -76.9% from what the company reported a year ago. European Wax Center, Inc. currently has a Zacks Rank of #3 (Hold).
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