#4 - e.l.f. Beauty (NYSE:ELF)
After being one of the top-performing stocks in the first half of 2024, e.l.f. Beauty Inc. (NYSE: ELF) has retreated more than 40% and is down over 27% with two months left in 2024. The company has continued to gain market share over the last two years. But as a company such as NVIDIA Corp. (NASDAQ: NVDA) reminds investors, expectations can be a burden and a blessing.
That seems to be the case with e.l.f. Beauty. The stock has received five downgrades in the past month, all being of the price target variety. It still has a consensus Buy rating, but analysts wanted to see more from the company’s earnings and guidance and didn’t get it.
At around 37x forward earnings, it’s hard to say that ELF is fairly valued. That idea is backed up by short interest, which is around 8%. That's not excessive, but it does suggest that a healthy percentage of short-selling is happening.
The next catalyst for ELF stock is likely to come from its earnings report on November 6. Analysts will be looking particularly at the company’s skincare division as well as news of international expansion. Positive news in one or both areas could reverse analyst sentiment and the ELF stock price.
About e.l.f. Beauty
e.l.f. Beauty, Inc, together with its subsidiaries, provides cosmetic and skin care products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare brand names worldwide. The company offers eye, lip, face, face, paw, and skin care products. It sells its products through national and international retailers and direct-to-consumer channels, which include e-commerce platforms in the United States, and internationally primarily through distributors.
Read More - Current Price
- $105.84
- Consensus Rating
- Buy
- Ratings Breakdown
- 14 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $183.80 (73.7% Upside)
