e.l.f.(US:ELF) The Motley Foolยท2024-11-04 12:55Group 1: Amazon - Amazon is a leading player in e-commerce and artificial intelligence, with a stock increase of 31% this year, and 63 out of 67 analysts recommend it as a buy [1] - Despite its potential, Amazon's growth may slow due to its already large size, making it harder to double or triple its business compared to its early days [2] - Amazon's revenue growth for the past four quarters has been 14%, 13%, 10%, and 11% respectively [7] Group 2: e.l.f. Beauty - e.l.f. Beauty has rapidly grown in the cosmetics industry, moving from the No. 5 to the No. 2 spot in mass cosmetic brand dollar share, with a 45% increase in its skincare business while the overall industry grew by only 1.2% [5] - In the fiscal first quarter of 2025, e.l.f. reported a 50% year-over-year sales increase and a gross margin expansion of 0.8 percentage points to 71% [6] - e.l.f.'s revenue growth for the past four quarters has been significantly higher than Amazon's, with rates of 76%, 85%, 77%, and 50% respectively [7] - e.l.f. stock trades at a forward one-year P/E ratio of 25, which is cheaper than Amazon's 33, indicating potential for growth [8] Group 3: Revolve Group - Revolve has utilized an AI-based platform and a strong social media presence to position itself as a contender in the fashion industry [9] - In the second quarter, Revolve experienced a 3% year-over-year sales increase and more than doubled its net income compared to the previous year [11] - Revolve's active customer base grew by 5% year-over-year, and average order value increased by 2% [11] - The company has implemented strategies to reduce return rates, which positively impacts future sales [12] - Revolve's stock trades at a forward one-year P/E ratio of 36, slightly higher than Amazon's, reflecting its growth potential [15]