Topic: How To Invest

Q: Hi, Pat and team. I have seen some interesting comments on E.L.F. Beauty lately. What’s your view on this stock as a buy? Thanks in advance.

Article Excerpt

A: E.L.F. Beauty Inc., $34.07, symbol ELF on New York (Shares outstanding: 52.4 million; Market cap: $1.8 billion; www.elfbeauty.com), sells cosmetics at below department-stores prices and those of specialty shops like Sephora. E.L.F. stands for eyes, lips and face. The company’s products are sold in its own E.L.F. stores, online, and at large retailers such as Target, Walmart, and Ulta Beauty. The company aims to develop its products more quickly than bigger mass-market brands, allowing it to rapidly respond to shifting consumer tastes. E.L.F. started selling online in 2004, but now generates most of its sales from major retail chains. Its products are generally priced at $4, $6, and $10 (versus $30, $50 or more for prestigious brands). Items include bath and skincare products, mineral-based makeup, professional tools, eyeliners, lipstick, glosses, blushes, bronzers, brushes and mascara. E.L.F.’s revenue rose 45.3% over the last five years, from $269.9 million in 2017 to $392.1 million in 2021. Excluding one-time items, earnings rose 42.6%, from $31.7…

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