Beauty stocks have long been favorites for investors chasing both steady growth and splashy product launches. Major players like Estée Lauder (EL) and L’Oréal (LRLCY) often grab the headlines, but smaller, nimble brands can offer outsized gains for those willing to take a chance, and E.L.F. Beauty (ELF) exactly fits that profile.
On May 29, ELF shares jumped nearly 24% after the company revealed it would spend $1 billion to acquire Hailey Bieber’s fast-growing beauty brand, Rhode. That deal instantly gives E.L.F. a direct line to Gen Z shoppers seeking prestige products, while diversifying its portfolio beyond mass-market essentials.
