E.l.f. Beauty’s stock plummets 43%—but analysts still bet on its future
E.l.f. Beauty, once a standout in the cosmetics sector, is now facing a tough period. The company’s stock has dropped sharply in recent weeks, underperforming the broader stock market today. Despite this, analysts still see long-term potential in the brand’s growth strategy and loyal customer base.
E.l.f. shares have fallen by 42.93% over the past four weeks compared to the S&P 500. This decline follows a broader trend of underperformance over the last year, though the stock has still outperformed the index over three- and five-year periods. The company’s earnings per share (EPS) also took a hit, dropping from $0.33 to $0.05 in the fiscal second quarter.
E.l.f. Beauty’s stock currently trades at a high price-to-earnings ratio of 50, reflecting investor optimism about its long-term prospects. While short-term challenges persist, the company’s strong market position and growth targets suggest it remains a key player in the industry. The coming quarters will reveal whether its pricing strategy can offset rising costs and stabilise performance.
