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E.l.f. Beauty (ELF) Outpaces Stock Market Gains: What You Should Know

e.l.f. Beauty (ELF) closed at $90.14 in the latest trading session, marking a +1.2% move from the prior day. This move outpaced the S&P 500's daily gain of 1.19%. At the same time, the Dow added 1.24%, and the tech-heavy Nasdaq gained 8.36%.

Prior to today's trading, shares of the cosmetics company had lost 3.79% over the past month. This has lagged the Consumer Staples sector's gain of 0.67% and the S&P 500's loss of 0.54% in that time.

e.l.f. Beauty will be looking to display strength as it nears its next earnings release, which is expected to be May 24, 2023. In that report, analysts expect e.l.f. Beauty to post earnings of $0.20 per share. This would mark year-over-year growth of 53.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $156.81 million, up 49.15% from the year-ago period.

It is also important to note the recent changes to analyst estimates for e.l.f. Beauty. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.47% higher. e.l.f. Beauty is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, e.l.f. Beauty is currently trading at a Forward P/E ratio of 54.92. For comparison, its industry has an average Forward P/E of 33.75, which means e.l.f. Beauty is trading at a premium to the group.

Meanwhile, ELF's PEG ratio is currently 1.72. 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. The Cosmetics industry currently had an average PEG ratio of 1.95 as of yesterday's close.

The Cosmetics industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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

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