The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Zacks.com users have recently been watching e.l.f. Beauty (ELF) quite a bit.
The S&P 500 is up 81% over the last five years and is sitting at an all-time high as of this writing. In short, it's hard to find quality growth stocks that aren't hitting new highs along with the market.
E.l.f. Beauty (ELF -1.00%) spends aggressively to achieve growth and gain market share in the cosmetics industry.
e.l.f. Beauty ELF recently warned about slowing sales in January 2025. As a result, this Zacks Rank #5 (Strong Sell) lowered its fiscal full year 2025 guidance and shares sank.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
The stock market hasn't shown much love to specialty retailer Ulta Beauty (ULTA -3.40%) or cosmetics giant e.l.f. Beauty (ELF -0.17%) lately.
Shares of cosmetics company e.l.f. Beauty (ELF -2.42%) are tanking.
e.l.f. Beauty (ELF 4.17%) shareholders have been on a rollercoaster ride over the past few years. The emerging makeup and skincare brand has been stealing market share from industry incumbents thanks to its affordable price points and its social media-savvy marketing strategy.
e.l.f. stock crashed on temporary headwinds in January twice. First, after the scanner data came out. Second, after the firm cut guidance. Short-term issues like the TikTok ban, California wildfires, and intense industry discounting contributed to January's weak sales, presenting a buying opportunity. Google searches for e.l.f. are picking back up again in February.
e.l.f. Beauty (ELF) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
The FY25 revenue outlook of 27%-28% suggests Q4 growth will be low, raising concerns about sustained demand and competitive advantage. Q3 results showed sales up 31% and market share gains, but EPS missed by $0.02. Uncertainty around TikTok, tariffs, and social media trends makes ELF's future growth unpredictable, warranting a cautious investment approach.