Elf Beauty, IBD Stock Of The Day, Flashes Sell Signal After 150% Rally To Record Highs

e.l.f. Magnificence

e.l.f. Magnificence





IBD Inventory Evaluation

  • Onerous break of 10-week transferring common flashes promote sign.

Composite Ranking

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* Not real-time knowledge. All knowledge proven was captured at
1:39PM EDT on

ELF Magnificence is the IBD Stock of The Day for Wednesday, however not as a result of the inventory is a purchase. Elf inventory is flashing a promote sign because it breaks under a key degree of assist.


Ulta Feedback Spark Cosmetics Drop

Magnificence and cosmetics shares tumbled Wednesday following cautious feedback from Ulta Magnificence (ULTA) executives in the course of the JPMorgan Annual Retail Spherical Up Investor Convention.

Ulta CEO Dave Kimball and CFO Paula Oyibo mentioned the corporate is seeing “a bit slower progress” than anticipated this yr and expects comparable gross sales progress on the “decrease finish” of its steering for the primary half of the yr, The Fly reported.

“We had deliberate for moderation in complete class progress to sort of the mid-single-digit vary,” Oyibo mentioned. “What we have seen to this point is a slowdown within the complete class throughout worth factors and segments. In order that’s a bit earlier and a bit larger than we thought.”

Ulta previously guided 2024 comparable gross sales progress between 4% and 5%, with the primary half of the yr within the low-single digits and the second half of the yr within the mid-single digits.

The corporate now expects Q1 comparable gross sales to be on the decrease finish of the low-single digit vary offered within the first-half steering.

CEO Kimball mentioned shoppers are nonetheless “obsessed with magnificence,” however famous rising financial pressures.

“The extent of engagement we see — in social media, and in our shops and on-line, and all of the touchpoints now we have — continues to be very sturdy,” Kimball mentioned. “However there’s rather a lot occurring. Economically, there’s sort of blended knowledge factors.”

Kimball famous wholesome employment charges and wage progress, however added there are pressures from rising bank card debt and pupil mortgage dynamics. Extra broadly, there are political challenges and international conflicts within the midst of an election yr, he mentioned.

ULTA inventory tanked 15.3% Wednesday after the feedback. Magnificence shares typically felt a few of that undertow. Estee Lauder (EL) retreated 4.2% whereas Coty (COTY) fell 6.3%.

Elf Magnificence Inventory

ELF inventory tumbled 11.9% Wednesday, falling decisively under its 50-day moving average and 10-week line. A tough transfer under both line in sturdy quantity signifies a sell signal.

Commerce quantity on Wednesday spiked above 272% the day by day common, MarketSurge knowledge exhibits.

Shares had rallied virtually 151% from their Oct. 31 lows to an all-time excessive on March Four of 221.83. The corporate in early February beat Q3 estimates and hiked its outlook. Nonetheless, Elf’s earnings progress slowed over the previous three quarters from triple-digit positive factors.

Buyers who purchased on the 139.85 entry noticed shares rise virtually 59% to a March Four peak. The inventory had trimmed that achieve to about 33% by Tuesday’s shut, forward of Wednesday’s promote sign.

Elf Magnificence has a 95 Composite Rating out of a best-possible 99. The Composite Ranking combines numerous technical indicators into one easy-to-read rating. The inventory has a 98 EPS Rating. ELF’s relative strength line has been falling from its early March highs and it has a 96 RS Rating.

Elf Magnificence leads the Cosmetics/Private Care Group in line with IBD Stock Checkup.

Regardless of Wednesday’s drop, ELF inventory has superior 13.5% in 2024.

You possibly can observe Harrison Miller for extra inventory information and updates on X/Twitter @IBD_Harrison


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