Is ELF BEAUTY INC (NYSE:ELF) suited for growth investing?

In this article we will dive into ELF BEAUTY INC (NYSE:ELF) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ELF BEAUTY INC showing up in our CANSLIM growth screen, which makes it worth to investigate a bit more.

Some of the canslim metrics of NYSE:ELF highlighted

• The EPS of ELF BEAUTY INC has exhibited growth from one quarter to another (Q2Q), with a 128.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• With consistent quarter-to-quarter (Q2Q) revenue growth of 76.21%, ELF BEAUTY INC exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• Over the past 3 years, ELF BEAUTY INC has demonstrated 37.84% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With a solid Return on Equity (ROE) of 23.55%, ELF BEAUTY INC exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• The Relative Strength (RS) of ELF BEAUTY INC has consistently been strong, with a current 97.55 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. ELF BEAUTY INC demonstrates promising potential for sustained price momentum.
• ELF BEAUTY INC exhibits a favorable Debt-to-Equity ratio at 0.11. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• With 15.53% of the total shares held by institutional investors, ELF BEAUTY INC showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.

What is the technical picture of NYSE:ELF telling us.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to ELF. Both in the recent history as in the last year, ELF has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that ELF is one of the better performing stocks in the market, outperforming 97% of all stocks. We also observe that the gains produced by ELF over the past year are nicely spread over this period.
• ELF is one of the better performing stocks in the Personal Care Products industry, it outperforms 94% of 39 stocks in the same industry.
• ELF is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• ELF is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

For an up to date full technical analysis you can check the technical report of ELF

Zooming in on the fundamentals.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Overall ELF gets a fundamental rating of 7 out of 10. We evaluated ELF against 39 industry peers in the Personal Care Products industry. ELF gets an excellent profitability rating and is at the same time showing great financial health properties. ELF is not overvalued while it is showing excellent growth. This is an interesting combination. This makes ELF very considerable for growth and quality investing!

Our latest full fundamental report of ELF contains the most current fundamental analsysis.

Our CANSLIM screen will find you more ideas suited for growth investing.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.