Is e.l.f. Beauty stock too cheap to pass up right now?Buying a top growth stock on weakness can result in fantastic gains for long-term investors. The key is to understand why a stock may be struggling. If it's due to market or industry-related factors, and the underlying business remains in solid shape, it can be an optimal time to invest in a struggling stock.One growth stock that's been under pressure in recent months is e.l.f. Beauty (ELF 1.54%). Although the company has been posting strong results, it' ...

I recently joined The REIT Forum and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber only portfolios.I last covered e.l.f. Beauty (NYSE: ELF ) on September 1, where I reiterated my “buy” rating based on belief that the company’s robust product innovation, compelling price points, and engaging marketing engine should enable it to gain market share inAmrita runs a boutique family office fund in beautiful Vancouver, where she lead ...

Core Viewpoint - e.l.f. Beauty, Inc. has seen a significant decline in stock price, underperforming compared to the industry and broader market, raising concerns about its future growth potential and valuation [1][3]. Group 1: Stock Performance - e.l.f. Beauty's stock price has dropped 39.2% over the past three months, while the industry declined by 13.9%, contrasting with the Zacks Consumer Staples sector's growth of 4.7% and the S&P 500's rise of 5.6% [1]. - The stock closed at $107.94, reflecting a 51.3% decrease from its 52-week high of $221.83, and is trading below its 50 and 200-day moving averages, indicating potential weakness [2]. Group 2: Valuation and Market Expectations - The company has a forward 12-month P/E ratio of 26.65, which is higher than the industry average of 22.02 and the S&P 500's 22.20, suggesting historically high investor expectations for future growth [3]. - e.l.f. Beauty's Value Score of F indicates concerns regarding its overvaluation, suggesting that the current stock price may not align with its underlying fundamentals [3]. Group 3: Challenges and Market Environment - The company faces macroeconomic headwinds, including inflation and softening consumer spending, which have created a cautious retail environment [5]. - Discretionary items like beauty products are often the first to be affected when consumers tighten their budgets, potentially impacting demand, especially in the color cosmetics segment [6]. Group 4: Competitive Landscape - e.l.f. Beauty competes with major players like The Estee Lauder Companies and Coty, and its market share in essential categories like foundation remains below 2%, indicating a need for deeper market penetration [8]. - The company's expansion into new product categories may slow growth as it competes directly with established brands that have loyal customer bases [8]. Group 5: Financial Outlook - Analysts have revised downward the Zacks Consensus Estimate for EPS over the past 60 days, indicating a more cautious outlook and potential difficulties in reaching profitability targets [10]. - e.l.f. Beauty anticipates tough year-over-year comparisons for its second-quarter results, with adjusted EBITDA margins expected to fall to the low teens due to increased marketing and digital investments [9]. Group 6: Strategic Initiatives - The company is focused on innovation, with recent product launches receiving positive consumer feedback, which underscores its strategy to enhance product offerings and drive growth [11]. - e.l.f. Beauty is expanding its retail presence through partnerships with major retailers like Target and Ulta Beauty, achieving a market share increase from 13% to over 20% at Target [11]. - Significant investments in digital and e-commerce platforms are being made to improve online sales and customer engagement, which are crucial for growth in the competitive digital beauty market [11][12].

These businesses are trading at discounts right now. The bull market has had a variable impact for stocks across a range of industries the last few years. While some companies have ridden the bull market waves, others have retreated or been beaten down by the market at large for one reason or another. Even if you have a more modest amount to invest, say $200, there are still quality businesses begging to be bought in the current environment. Sometimes, these stocks are discounted as fickle investor sentimen ...

e.l.f. Beauty (ELF) ended the recent trading session at $105.41, demonstrating a +1.35% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.6%. The cosmetics company's shares have seen a decrease of 5.84% over the last month, not keeping up with the Consumer Staples sector's loss of 3.31% and the S&P 500's gain of 6.41%. The investment community will be closely monit ...

Release Date: August 08, 2024 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points e.l.f. Beauty Inc (ELF, Financial) reported a 50% increase in net sales for Q1 fiscal 2025, marking its 22nd consecutive quarter of sales growth and market share gains. The company achieved a significant gross margin improvement of approximately 80 basis points, reaching 71% in Q1. e.l.f. Beauty Inc (ELF) continues to outperform in the color cosmetics and skincar ...

The beauty brand is still reeling from a weak earnings report in August. The stock of e.l.f. Beauty (ELF -0.42%) fell 27.2% in September, according to data from S&P Global Market Intelligence. A fast-growing beauty brand taking market share from incumbents, e.l.f. Beauty rose to investor fame after accelerating revenue growth to nearly 100% in recent years. Now, it has revised its guidance downward for the upcoming fiscal year, leading investors to sour on the stock. Here's why shares of e.l.f. Beauty sank ...

e.l.f. Beauty (NYSE: ELF ) has accumulated a 50% drawdown since its last high, which seems justified to me because the valuation multiple became very rich at the time. Now, thanks to my experience as a consumer and My name is María Fernanda and I am currently studying an MBA. My inspiration investors are Warren Buffett, Peter Lynch and Terry Smith, so I look for quality companies at a reasonable valuation. I believe that, in the long term, fundamentals are what drive the share price, so I look to predict wh ...

e.l.f. Beauty (ELF) closed at $105.62 in the latest trading session, marking a -0.33% move from the prior day. This move lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.08%. Prior to today's trading, shares of the cosmetics company had lost 24.43% over the past month. This has lagged the Consumer Staples sector's gain of 0.53% and the S&P 500's gain of 1.21% in that time. The investment community will be payin ...

The cosmetics company is growing revenue robustly, but it is coming at the expense of profit margins. E.l.f. Beauty (ELF -3.14%) is giving investors mixed feelings about its strategy, which seems to focus on growth at all costs. *Stock prices used were the afternoon prices of Sept. 28, 2024. The video was published on Sept. 30, 2024. ...