E.L.F. Beauty Inc (NYSE:ELF) – A Strong Growth Stock with Bullish Technical Setup

E.L.F. Beauty Inc (NYSE:ELF) stands out as a compelling growth stock with a promising technical breakout pattern. The company, known for its inclusive, clean, and cruelty-free cosmetics, has demonstrated strong financial performance while presenting a favorable technical setup for potential investors.

Fundamental Strengths

• Growth: ELF scores an 8/10 in growth, with revenue expanding by 28.28% over the past year and a projected annual EPS growth of 16.73%.
• Profitability: The company maintains a solid 7/10 profitability rating, supported by an improving Operating Margin (12.03%) and Gross Margin (71.24%).
• Financial Health: ELF earns a 7/10 health rating, reflecting strong solvency with a Debt-to-Equity ratio of 0.34 and a healthy Current Ratio of 3.05.
• Valuation: While priced at a premium (P/E of 37.27), the strong growth trajectory may justify the valuation.

Technical Setup

• Bull Flag Pattern: ELF is currently forming a bull flag, a continuation pattern suggesting further upside after a recent rally.
• Trend Strength: Both short-term and long-term trends are positive, with key moving averages (20-day, 50-day, 200-day) sloping upward.
• Support & Resistance: Immediate support lies near $121, while resistance is seen around $126.34-$128.54. A breakout above resistance could signal a new upward move.
• Volume: Reduced volume during the pullback indicates consolidation rather than distribution, a positive sign for continuation.

For a deeper dive, review the full fundamental analysis and technical analysis report.

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Disclaimer

This is not investment advice. The observations are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.