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?
e.l.f. Beauty (ELF) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
e.l.f. Beauty (ELF) has surged ~600% over the past 5 years, driven by a digital-first strategy, affordable pricing, and strong market share gains. Despite tariffs and weaker U.S. consumer demand, the company posted its 26th consecutive quarter of net sales growth, with international penetration doubling since FY2020. Elevated valuation (forward P/E ~38) is supported by above-market margins (71% gross margin vs. 36% peers) and by continued top-line growth with international expansion.
e.l.f. Beauty, Inc. (ELF) shares up 468% since Big Money outlier inflow signal in January 2021.
Shares in Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF) rose 10% after the group was appointed as the exclusive UK distributor for ELF Nicotine Pouches, marking a significant step into one of the fastest-growing segments of the tobacco alternatives market. The London-listed company will handle the nationwide rollout through its Chill Connect division, with the partnership expected to add to revenues in the 2026 financial year.
Recently, Zacks.com users have been paying close attention to e.l.f. Beauty (ELF).
The legal-themed advertisement builds on a Superbowl 2024 campaign, and sees Heidi N Closet and Rife try to defend their clients from overpriced beauty products.
ELF simply cannot catch a break, as they deliver a poorly received FQ1'26 gross margin profile while offering an impacted H1 FY2026 adj EBITDA margin guidance. These imply a minimal bottom-line accretion from the recently closed rhode acquisition and the $1 price hike across its global offerings in FQ2'26. While ELF's high double digits international sales growth has been commendable, it has yet to balance the decelerating US sales - with it presenting a mixed investment thesis.
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.
e.l.f. Beauty (ELF) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Market has overreacted to the downside on e.l.f. Beauty removing their fiscal 2026 outlook due to uncertainty about tariffs. International sales have grown from $28M to $266M in six years, now making up 20% of revenue and growing at 30% annually. Market is not taking into account the big revenue boost that will come from a $1 adjustment to all their product line globally.
ELF remains resilient with strong brand relevance and market share gains, but growth is slowing and margin pressures are mounting due to tariffs and acquisition costs. The Rhode acquisition offers long-term topline and margin benefits, but brings near-term integration costs and increased leverage, raising short-term risks. Valuations are still premium but more reasonable after the earnings drop; the stock now prices in slower growth, margin pressures, and integration risks.