ELF: An Inflation-Fatigued Gal’s Best Friend
Posted: May 05, 2024
- ULTA stock dropped due to reported slowdown in demand during Q1 - ELF (stock ticker ELF) has been gaining market share by offering affordable beauty products - Reasons to invest in ELF: 1. 85% sales growth last quarter with consistent growth over 20 quarters 2. #1 cosmetics brand among teens 3. Possible increase in sales due to consumer response to inflation 4. Positioned to benefit from skincare industry growth 5. PE higher than other beauty stocks, but justified by growth and popularity among teens - ELF stock currently 28% below all-time high, potential for growth - Expected strong earnings report on May 22 - Investor holds $165 call for 5/24 and $145 leap call for January 2026 on ELF TLDR: ULTA warning about beauty industry trouble actually benefits ELF, which is oversold and poised for strong earnings.
Summarized top reddit comments: - Skin care is becoming popular among young girls - Consider investing in ELF due to lower class abandoning luxury brands - ELF may be affected by a potential TikTok ban but could pivot successfully - Chart shows strong growth but may be breaking down - Consider long-term investment in ELF - Stock has seen significant growth and may be better for a short swing trade - ELF has experienced growth and anticipated more growth in earnings
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