e.l.f. Beauty's Sustained Growth and Market Share Gains
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy ELF?
Source: Fool
- Sustained Sales Growth: e.l.f. Beauty has achieved 27 consecutive quarters of sales growth, showcasing its strong appeal in the low-cost cosmetics market despite competition from giants like Procter & Gamble and Estée Lauder, indicating its popularity among younger consumers.
- Market Share Gains: e.l.f. Beauty leads among teen consumers, and as these consumers transition into adulthood, the brand's market share is likely to expand further, potentially becoming a staple brand, especially for budget-conscious shoppers.
- International Expansion: The company is actively pursuing international market growth, and while facing headwinds from tariffs and inflation, its low-price strategy may attract more consumers during economic downturns, enhancing long-term growth potential.
- Balancing Profitability and Growth: Although management is focused on growth rather than short-term profitability, e.l.f. Beauty remains a profitable business, with the potential to leverage current industry challenges to solidify its market position while transitioning towards profitability.
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Analyst Views on ELF
Wall Street analysts forecast ELF stock price to rise
15 Analyst Rating
12 Buy
3 Hold
0 Sell
Strong Buy
Current: 63.000
Low
85.00
Averages
112.21
High
136.00
Current: 63.000
Low
85.00
Averages
112.21
High
136.00
About ELF
e.l.f. Beauty, Inc. is a multi-brand beauty company. The Company offers inclusive, accessible, clean, vegan, and cruelty-free cosmetics and skincare products. The Company's family of brands includes e.l.f. Cosmetics, e.l.f. SKIN, Naturium, Well People, Keys Soulcare, and rhode. Its e.l.f. SKIN is an ingredient-focused, dermatologist-developed formulas for every eye, lip and face. The Company operates across beauty categories including eye, lip, and face makeup, beauty tools and accessories, and skincare products. Its color cosmetics and skin care products are broadly sold through food, drug, and mass channels, as well as through department stores and direct and specialty channels. The Company sells its products with retailers in the United States, as well as internationally. It also sells its products online through its own direct e-commerce channels, as well as through other e-commerce Websites.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Breakthrough for Female Racer: Katherine Legge qualified for the 2024 Indy 500 with a four-lap average speed of 230.244 mph, becoming the ninth woman to compete in the race, showcasing the potential and strength of women in motorsports.
- Brand Support and Empowerment: e.l.f. Cosmetics, as Legge's sponsor, provides not only financial backing but also promotes visibility for women in racing through its 'eyes.lips.fuel.' initiative, advocating for gender equality and boosting women's confidence in the sport.
- Fan Engagement Experience: In the Indy 500 Fan Zone, e.l.f. has set up interactive exhibits, including a replica of the race car and a personalization station for products, aimed at engaging the younger generation with racing culture and enhancing brand loyalty.
- Pioneering Female Athletes: Legge, as e.l.f.'s first 'empowered.legendary.female,' not only breaks barriers in racing but also collaborates with other female athletes to promote values of positivity, inclusivity, and accessibility, inspiring more women to pursue their dreams.
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- Promotion of Dance Culture: With 26 million people participating in dance annually and 181 billion hashtag views on TikTok, e.l.f.'s involvement is expected to further popularize dance culture and enhance the brand's influence among young audiences.
- On-Site Experience: At e.l.f. x IDL events, professional makeup artists will provide personalized makeup services and custom glam kits for each dancer, aiming to boost their confidence and improve performance experiences, which is anticipated to increase brand loyalty.
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- e.l.f. Beauty's Acquisition Strategy: e.l.f. Beauty (ELF) acquired Hailey Bieber's Rhode brand, which achieved over $200 million in sales in just three years, and is expected to drive future growth by expanding the product line and increasing retail channels.
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Amazon Stock Awakens with Significant Growth Potential
- AWS Growth Surge: Amazon is set to invest $200 billion in data center infrastructure in 2023 to meet the growing demand from its cloud computing unit, AWS, which will drive long-term growth and solidify its market leadership.
- Dutch Bros Expansion Story: Dutch Bros coffee shops reached 1,136 locations by the end of last year, with plans to expand to 7,000 in the U.S.; each shop generates over $2 million in sales, showcasing strong same-store sales growth and excellent unit economics.
- e.l.f. Beauty Acquisition Opportunity: e.l.f. Beauty's acquisition of Hailey Bieber's Rhode brand, which has generated over $200 million in sales, allows for product line expansion and retail channel growth, positioning the company for significant future growth.
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See More
Three Companies Worth Owning Forever
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- International Expansion Potential: e.l.f. plans to expand its market from 16 to 120 countries while targeting a gross margin of 70%, significantly above the industry average of 41%, providing ample room for future growth.
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- Young Consumer Drive: Vita Coco's core demographic is young and health-conscious, with household penetration of coconut water still low globally, indicating significant future growth potential, especially in the U.K. and German markets.
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- Breakthrough for Female Racer: Katherine Legge qualified for the 2024 Indy 500 with a four-lap average speed of 230.244 mph, becoming the ninth woman to compete in the race, showcasing the potential and strength of women in motorsports.
- Brand Support and Empowerment: e.l.f. Cosmetics, as Legge's sponsor, provides not only financial backing but also promotes visibility for women in racing through its 'eyes.lips.fuel.' initiative, advocating for gender equality and boosting women's confidence in the sport.
- Fan Engagement Experience: In the Indy 500 Fan Zone, e.l.f. has set up interactive exhibits, including a replica of the race car and a personalization station for products, aimed at engaging the younger generation with racing culture and enhancing brand loyalty.
- Pioneering Female Athletes: Legge, as e.l.f.'s first 'empowered.legendary.female,' not only breaks barriers in racing but also collaborates with other female athletes to promote values of positivity, inclusivity, and accessibility, inspiring more women to pursue their dreams.
See More
e.l.f. Cosmetics Partners with International Dance League
- New Brand Partnership: e.l.f. Cosmetics announces its founding partnership with the International Dance League (IDL), marking the brand's entry into competitive dance, which combines entertainment, sports, and self-expression, likely attracting more attention from younger consumers.
- Promotion of Dance Culture: With 26 million people participating in dance annually and 181 billion hashtag views on TikTok, e.l.f.'s involvement is expected to further popularize dance culture and enhance the brand's influence among young audiences.
- On-Site Experience: At e.l.f. x IDL events, professional makeup artists will provide personalized makeup services and custom glam kits for each dancer, aiming to boost their confidence and improve performance experiences, which is anticipated to increase brand loyalty.
- Global Event Strategy: The 2026 season will take place in five cities including New York, Vancouver, Sydney, Seoul, and Los Angeles, with e.l.f. serving as the official livestream partner on YouTube and Twitch, expanding the audience reach and enhancing the brand's global visibility.
See More
Investment Opportunities in Consumer Stocks
- Market Dynamics: While AI stocks have rebounded to lead the market higher, growth stocks in the consumer sector remain under pressure, particularly due to concerns about the impact of the war with Iran and high oil prices on consumer behavior.
- e.l.f. Beauty Opportunity: e.l.f. Beauty (ELF) has a market cap of $3.9 billion and a forward P/E ratio of just 16 times, successfully gaining market share in the mass cosmetics category through a fast-follower strategy, with its recent acquisition of upscale skincare brand Rhode expected to drive future growth.
- Celsius Holdings Growth Potential: Celsius Holdings (CELH) has a market cap of $8.9 billion and a forward P/E of 17 times, having successfully attracted female consumers through a distribution deal with PepsiCo, and is now looking to expand its market presence with the acquisitions of Alani Nu and RockStar brands.
- Investment Strategy: Investors can split $5,000 between e.l.f. and Celsius, purchasing 40 shares of e.l.f. and 70 shares of Celsius, leveraging both companies' successful distribution strategies to capitalize on future growth opportunities.
See More
Investment Opportunities Amid Market Turmoil
- Amazon's Infrastructure Investment: Amazon (AMZN) plans to invest $200 billion in 2023 for data center infrastructure to meet the growing demand from its cloud computing unit, AWS, which is expected to further enhance its market share.
- Dutch Bros' Expansion Potential: Dutch Bros (BROS) had 1,136 stores at the end of 2022 and aims to expand to 7,000 in the U.S., showcasing strong growth potential with each store generating over $2 million in sales and quick payback periods.
- e.l.f. Beauty's Acquisition Strategy: e.l.f. Beauty (ELF) acquired Hailey Bieber's Rhode brand, which achieved over $200 million in sales in just three years, and is expected to drive future growth by expanding the product line and increasing retail channels.
- Market Environment Challenges: Despite the challenges posed by the war with Iran and rising oil prices due to the closure of the Strait of Hormuz, investors should focus on long-term growth potential and seek stocks with strong fundamentals to navigate short-term volatility.
See More
Amazon Stock Awakens with Significant Growth Potential
- AWS Growth Surge: Amazon is set to invest $200 billion in data center infrastructure in 2023 to meet the growing demand from its cloud computing unit, AWS, which will drive long-term growth and solidify its market leadership.
- Dutch Bros Expansion Story: Dutch Bros coffee shops reached 1,136 locations by the end of last year, with plans to expand to 7,000 in the U.S.; each shop generates over $2 million in sales, showcasing strong same-store sales growth and excellent unit economics.
- e.l.f. Beauty Acquisition Opportunity: e.l.f. Beauty's acquisition of Hailey Bieber's Rhode brand, which has generated over $200 million in sales, allows for product line expansion and retail channel growth, positioning the company for significant future growth.
- Market Uncertainty Impact: Despite the uncertainty caused by the war with Iran and rising oil prices, investors should focus on stocks with strong growth catalysts for sustainable returns in the long run.
See More
Three Companies Worth Owning Forever
- e.l.f. Beauty's Consistent Growth: e.l.f. Beauty has achieved 28 consecutive quarters of net sales growth, with a 38% increase in Q3 FY2026, raising its full-year growth outlook to 22%-23%, demonstrating strong resilience and brand loyalty in a competitive beauty market.
- International Expansion Potential: e.l.f. plans to expand its market from 16 to 120 countries while targeting a gross margin of 70%, significantly above the industry average of 41%, providing ample room for future growth.
- Vita Coco's Market Dominance: Vita Coco controls 42% of the U.S. coconut water market and is expected to continue setting records in 2026, with its supply chain advantages making it unique in the industry and difficult for competitors to replicate.
- Young Consumer Drive: Vita Coco's core demographic is young and health-conscious, with household penetration of coconut water still low globally, indicating significant future growth potential, especially in the U.K. and German markets.
See More
