Cosmetics company e.l.f. Beauty (NYSE:ELF) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 9% year on year to $353.7 million. On the other hand, next quarter’s revenue guidance of $328.2 million was less impressive, coming in 8.5% below analysts’ estimates. Its non-GAAP profit of $0.89 per share was 6.4% above analysts’ consensus estimates.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
ELF Beauty (NYSE:ELF) combines strong fundamentals—28% revenue growth, high profitability—with a bullish technical setup, making it a top growth stock pick.
Over the last six months, e.l.f. Beauty’s shares have sunk to $106.01, producing a disappointing 17.4% loss - a stark contrast to the S&P 500’s 5.4% gain. This might have investors contemplating their next move.
Three companies are outpacing the market by leading secular trends in medicine, artificial intelligence, and consumer brands, creating durable growth stories.
Shares of cosmetics company e.l.f. Beauty (NYSE:ELF)
fell 7.1% in the afternoon session after a significant institutional investor, Allspring Global Investments Holdings LLC, reported a massive reduction in its holdings.
