e.l.f. Beauty (ELF) closed at $106.16 in the latest trading session, marking a +1.68% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.92% for the day. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 2.03%.

The cosmetics company's shares have seen a decrease of 17.86% over the last month, not keeping up with the Consumer Staples sector's gain of 0.76% and the S&P 500's gain of 0.81%.

The investment community will be paying close attention to the earnings performance of e.l.f. Beauty in its upcoming release. The company is slated to reveal its earnings on February 6, 2025. It is anticipated that the company will report an EPS of $0.76, marking a 2.7% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $329.49 million, up 21.61% from the year-ago period.

ELF's full-year Zacks Consensus Estimates are calling for earnings of $3.61 per share and revenue of $1.34 billion. These results would represent year-over-year changes of +13.52% and +30.71%, respectively.

Any recent changes to analyst estimates for e.l.f. Beauty should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. e.l.f. Beauty currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, e.l.f. Beauty is holding a Forward P/E ratio of 28.95. Its industry sports an average Forward P/E of 25.39, so one might conclude that e.l.f. Beauty is trading at a premium comparatively.

Meanwhile, ELF's PEG ratio is currently 1.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Cosmetics stocks are, on average, holding a PEG ratio of 1.35 based on yesterday's closing prices.

The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 24% 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.

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