e.l.f. Beauty (ELF) ended the recent trading session at $53.47, demonstrating a +1.56% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 2.36%. Meanwhile, the Dow experienced a drop of 2.48%, and the technology-dominated Nasdaq saw a decrease of 2.55%.

Coming into today, shares of the cosmetics company had lost 16.23% in the past month. In that same time, the Consumer Staples sector gained 2.03%, while the S&P 500 lost 5.6%.

The investment community will be paying close attention to the earnings performance of e.l.f. Beauty in its upcoming release. The company is expected to report EPS of $0.74, up 39.62% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $328.17 million, showing a 2.19% escalation compared to the year-ago quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for e.l.f. Beauty. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.03% decrease. e.l.f. Beauty is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, e.l.f. Beauty is holding a Forward P/E ratio of 14.82. This indicates a premium in contrast to its industry's Forward P/E of 12.72.

We can also see that ELF currently has a PEG ratio of 3.25. 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 0.88 as of yesterday's close.

The Cosmetics industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 230, placing it within the bottom 8% of over 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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e.l.f. Beauty (ELF) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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