ELF Beauty saw its IBD SmartSelect Composite Rating rise to 96 Wednesday, up from 94 the day before.
The new rating is a sign the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. The best stocks tend to have a 95 or better grade as they kick off a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
ELF Beauty is currently extended beyond a proper buy zone after breaking out from a 33.73 buy point in a cup without handle. Put it on a watchlist and look for a buying opportunity on a pullback or a consolidation pattern.
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Earnings News
One weak spot is the company's 78 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of A shows heavy buying by institutional investors over the last 13 weeks.
The company posted a 44% EPS gain for Q1. Top line growth climbed 26%, up from 13% in the prior report. The company has now posted rising growth in each of the last two quarters.
ELF Beauty holds the No. 1 rank among its peers in the Cosmetics/Personal Care industry group. Prophase Labs and Inter Parfums are also among the group's highest-rated stocks.
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