IBD Stock Analysis
- Broke out past 57.02 buy point in heavy volume
- Relative strength at new high
- Earnings, revenue growth accelerating, though that trend may end
Industry Group Ranking
* Not real-time data. All data shown was captured at
2:49PM EST on
Oakland, Calif.-based ELF Beauty is a plant-based, animal-testing-free makeup and skin care company. Its brands include ELF Cosmetics, ELF Skin, Well People and Keys. ELF’s moderately priced products are sold online and at department and specialty stores, after shutting down its retail operations in 2019.
Unlike other cosmetics companies, ELF doesn’t test its products on animals and it is certified as cruelty free by People For The Ethical Treatment of Animals. And its line of products at affordable price points make it popular among consumers.
ELF Earnings Growth Accelerates
ELF earnings growth has accelerated for the past two quarters, from -19% to 71% in fiscal Q2 ending in September. Revenue growth has sped up for three straight quarters, including 71% in Q2. But those runs might be ending. ELF earnings are expected to dip 4% to 23 cents per share in Q3 as sales jump 24% to $121.3 million, according to FactSet.
Still, ELF stock is up 85% over the last year as the S&P 500 suffered declines. The outstanding performance garnered ELF Beauty strong institutional support. And the number of funds holding ELF Beauty stock grew to 454 in December from 374 in March.
ELF Stock Analysis
ELF Beauty stock jumped 4.3% to 58.02 in Friday’s market trading, clearing a 57.02 buy point from a five-week flat base. Volume was well above average. The current buy zone extends to 59.87, or 5% above the buy point.
ELF Beauty joined IBD Leaderboard on Friday.
ELF Beauty stock’s relative strength line is at highs, a bullish sign on a breakout.
ELF Beauty stock leads the IBD Cosmetics/Personal Care Group according to the IBD Stock Checkup. It has a perfect 99 RS Rating, meaning it has outperformed 99% of its market peers. ELF has a 91 EPS Rating due to its consistently positive earnings. And it has a best-possible 99 Composite Rating, which combines a number of key technical indicators into one score.
ELF stock rose 4% during intraday trading Friday.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
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