Posted on November 17, 2022
Today’s fruit is fresh-picked and straight to your crisper.
Straight to the chase, with square-jawed, military forthrightness!
The company under the scope today is e.l.f. Beauty Inc. (NYSE:ELF)—nothing so arrogant and grandiose, don’tcha know, as those who go with the lower case…
Anyway, these scumbags who prey on women’s insecurities make hundreds of millions selling cosmetic and skin care products.
And their stock price reflects it.
But we’re of the opinion that the most recent run-up is complete, and the stock’s strength is no more than a whipped clay, detox face mask.
Simple: the stock outran its earnings estimates—even the updated, hyper-excited, post-earnings forecasts of the last 30 days.
The company had a good quarter, we’ll give them that. But how much mascara can you lay on an industry that’s among the first to go south when consumers rein in their discretionary spending.
Here’s what the fundamentals look like—
The wise ones will do according to their wisdom.
Many happy returns!