Emerging Brands Present Buying Opportunities Amid Stock Pullbacks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ELF?
Source: Fool
- e.l.f. Beauty Brand: e.l.f. Beauty's stock has fallen 67%, yet its annual sales have surged from $578 million to $1.52 billion, indicating strong market demand and suggesting a potential rebound as sales growth continues.
- Market Share Growth: e.l.f. is growing at twice the rate of its competitors in the U.S. cosmetics market, with increasing shelf space at major retailers like Walmart, reflecting an enhancement in brand influence.
- On Holding Footwear Brand: On Holding's stock is down 29%, but its sales surged 35% year-over-year in the latest quarter, showcasing the brand's strong growth potential despite demand uncertainties.
- Pricing Power Demonstrated: On Holding's ability to maintain premium pricing without discounts indicates product quality and consumer loyalty, suggesting it will continue to attract consumers willing to pay a premium for comfort.
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Analyst Views on ELF
Wall Street analysts forecast ELF stock price to rise
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 76.820
Low
85.00
Averages
117.50
High
136.00
Current: 76.820
Low
85.00
Averages
117.50
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.
Emerging Brands Present Buying Opportunities Amid Stock Pullbacks
- e.l.f. Beauty Brand: e.l.f. Beauty's stock has fallen 67%, yet its annual sales have surged from $578 million to $1.52 billion, indicating strong market demand and suggesting a potential rebound as sales growth continues.
- Market Share Growth: e.l.f. is growing at twice the rate of its competitors in the U.S. cosmetics market, with increasing shelf space at major retailers like Walmart, reflecting an enhancement in brand influence.
- On Holding Footwear Brand: On Holding's stock is down 29%, but its sales surged 35% year-over-year in the latest quarter, showcasing the brand's strong growth potential despite demand uncertainties.
- Pricing Power Demonstrated: On Holding's ability to maintain premium pricing without discounts indicates product quality and consumer loyalty, suggesting it will continue to attract consumers willing to pay a premium for comfort.
See More
Market Update: S&P 500 Declines and Upcoming CPI Data
- CPI Expectations: The consumer price index, set to be released at 8:30 a.m. ET on Friday, is expected to show a month-over-month increase of 0.3% and a year-over-year rise of 2.5%, which could significantly influence market sentiment and lead investors to reassess their risk appetite.
- Moderna Stock Fluctuations: Moderna's shares have surged 50% over the past three months, closing at $40.11 on Thursday, although this remains significantly lower than the pandemic peak of $497, indicating ongoing volatility in biotech stocks that investors are closely monitoring.
- Wendy's Stock Decline: Wendy's shares fell 7.7% on Thursday, down 55% from their 52-week high, highlighting the persistent pressures facing the fast-food industry, which may impact its future market performance.
- Retail Sector Dynamics: The Amplify Online Retail ETF dropped nearly 4% on Thursday, now down 19.5% from its September high, reflecting weakness in the retail market, especially after experiencing five consecutive weeks of declines, which could negatively affect overall consumer confidence.
See More
Prime Capital Increases Stake in CAVA Group Amid Price Decline
- Share Acquisition: Prime Capital Management increased its stake in CAVA Group by 490,300 shares in Q4 2025, investing $27.34 million, reflecting confidence in the company despite a 48.5% drop in stock price over the past year.
- Increased Ownership: Following this acquisition, Prime Capital's stake in CAVA reached 7.19%, significantly impacting its reportable U.S. equity assets under management, indicating optimism about CAVA's growth potential.
- Market Performance: As of February 11, 2026, CAVA shares were priced at $67.37 with a market cap of $7.81 billion; despite market challenges, revenue grew 23% in the first nine months of fiscal 2025, showcasing strong expansion momentum.
- Strategic Implications: CAVA aims to operate over 1,000 restaurants by 2032, and Prime Capital's investment could yield substantial returns in the future, especially as CAVA is viewed as a potential opportunity similar to Chipotle at its current valuation.
See More
Retail Sales Figures Expected to Validate a Strong Holiday Season
Retail Sales Report: The upcoming retail sales report is expected to confirm a successful 2025 holiday season.
Unexpected Success: The holiday season managed to exceed expectations despite potential challenges.
See More
e.l.f. Beauty and Toast Inc. See High Options Trading Volume
- e.l.f. Beauty Options Activity: e.l.f. Beauty Inc. recorded an options trading volume of 9,828 contracts, equivalent to approximately 982,800 shares, representing 46.4% of its average daily trading volume of 2.1 million shares over the past month, indicating strong market interest in the company's future performance.
- High Strike Call Options: The $84 strike call option for e.l.f. has seen particularly high activity with 627 contracts traded today, representing about 62,700 underlying shares, reflecting investor expectations for future price appreciation.
- Toast Inc. Options Surge: Toast Inc. experienced even higher options trading volume at 51,966 contracts, translating to approximately 5.2 million shares, which constitutes 46.1% of its average daily trading volume of 11.3 million shares, showcasing strong investor interest in its future trajectory.
- Bullish Call Options: The $30 strike call option for Toast has recorded 22,461 contracts traded today, representing around 2.2 million shares, indicating a bullish sentiment among investors regarding the company's growth prospects.
See More
E.l.f. Beauty Reports Strong Earnings but Shares Decline
- Earnings Beat: E.l.f. Beauty reported an adjusted EPS of $1.24 for Q3, surpassing the consensus estimate of $0.72, with revenue of $489.5 million exceeding expectations of $459.1 million, indicating robust growth across retail and e-commerce channels.
- Guidance Upgrade: The company raised its full-year adjusted EPS guidance to a range of $3.05 to $3.10 and revenue guidance to $1.60 billion to $1.61 billion, both above consensus estimates, reflecting management's confidence in future growth prospects.
- Stock Price Pressure: Following an initial post-earnings rally, E.l.f. Beauty's shares fell 8.15% on Monday due to profit-taking and a cautious reassessment of the guidance, highlighting investor concerns about sustaining upward momentum in the near term.
- Technical Analysis: Currently, E.l.f. Beauty's stock is trading 13.9% below its 20-day SMA and 24.6% below its 100-day SMA, indicating significant short-term weakness, with key support at $69.00, suggesting traders should remain cautious.
See More
Emerging Brands Present Buying Opportunities Amid Stock Pullbacks
- e.l.f. Beauty Brand: e.l.f. Beauty's stock has fallen 67%, yet its annual sales have surged from $578 million to $1.52 billion, indicating strong market demand and suggesting a potential rebound as sales growth continues.
- Market Share Growth: e.l.f. is growing at twice the rate of its competitors in the U.S. cosmetics market, with increasing shelf space at major retailers like Walmart, reflecting an enhancement in brand influence.
- On Holding Footwear Brand: On Holding's stock is down 29%, but its sales surged 35% year-over-year in the latest quarter, showcasing the brand's strong growth potential despite demand uncertainties.
- Pricing Power Demonstrated: On Holding's ability to maintain premium pricing without discounts indicates product quality and consumer loyalty, suggesting it will continue to attract consumers willing to pay a premium for comfort.
See More
Market Update: S&P 500 Declines and Upcoming CPI Data
- CPI Expectations: The consumer price index, set to be released at 8:30 a.m. ET on Friday, is expected to show a month-over-month increase of 0.3% and a year-over-year rise of 2.5%, which could significantly influence market sentiment and lead investors to reassess their risk appetite.
- Moderna Stock Fluctuations: Moderna's shares have surged 50% over the past three months, closing at $40.11 on Thursday, although this remains significantly lower than the pandemic peak of $497, indicating ongoing volatility in biotech stocks that investors are closely monitoring.
- Wendy's Stock Decline: Wendy's shares fell 7.7% on Thursday, down 55% from their 52-week high, highlighting the persistent pressures facing the fast-food industry, which may impact its future market performance.
- Retail Sector Dynamics: The Amplify Online Retail ETF dropped nearly 4% on Thursday, now down 19.5% from its September high, reflecting weakness in the retail market, especially after experiencing five consecutive weeks of declines, which could negatively affect overall consumer confidence.
See More
Prime Capital Increases Stake in CAVA Group Amid Price Decline
- Share Acquisition: Prime Capital Management increased its stake in CAVA Group by 490,300 shares in Q4 2025, investing $27.34 million, reflecting confidence in the company despite a 48.5% drop in stock price over the past year.
- Increased Ownership: Following this acquisition, Prime Capital's stake in CAVA reached 7.19%, significantly impacting its reportable U.S. equity assets under management, indicating optimism about CAVA's growth potential.
- Market Performance: As of February 11, 2026, CAVA shares were priced at $67.37 with a market cap of $7.81 billion; despite market challenges, revenue grew 23% in the first nine months of fiscal 2025, showcasing strong expansion momentum.
- Strategic Implications: CAVA aims to operate over 1,000 restaurants by 2032, and Prime Capital's investment could yield substantial returns in the future, especially as CAVA is viewed as a potential opportunity similar to Chipotle at its current valuation.
See More
Retail Sales Figures Expected to Validate a Strong Holiday Season
Retail Sales Report: The upcoming retail sales report is expected to confirm a successful 2025 holiday season.
Unexpected Success: The holiday season managed to exceed expectations despite potential challenges.
See More
e.l.f. Beauty and Toast Inc. See High Options Trading Volume
- e.l.f. Beauty Options Activity: e.l.f. Beauty Inc. recorded an options trading volume of 9,828 contracts, equivalent to approximately 982,800 shares, representing 46.4% of its average daily trading volume of 2.1 million shares over the past month, indicating strong market interest in the company's future performance.
- High Strike Call Options: The $84 strike call option for e.l.f. has seen particularly high activity with 627 contracts traded today, representing about 62,700 underlying shares, reflecting investor expectations for future price appreciation.
- Toast Inc. Options Surge: Toast Inc. experienced even higher options trading volume at 51,966 contracts, translating to approximately 5.2 million shares, which constitutes 46.1% of its average daily trading volume of 11.3 million shares, showcasing strong investor interest in its future trajectory.
- Bullish Call Options: The $30 strike call option for Toast has recorded 22,461 contracts traded today, representing around 2.2 million shares, indicating a bullish sentiment among investors regarding the company's growth prospects.
See More
E.l.f. Beauty Reports Strong Earnings but Shares Decline
- Earnings Beat: E.l.f. Beauty reported an adjusted EPS of $1.24 for Q3, surpassing the consensus estimate of $0.72, with revenue of $489.5 million exceeding expectations of $459.1 million, indicating robust growth across retail and e-commerce channels.
- Guidance Upgrade: The company raised its full-year adjusted EPS guidance to a range of $3.05 to $3.10 and revenue guidance to $1.60 billion to $1.61 billion, both above consensus estimates, reflecting management's confidence in future growth prospects.
- Stock Price Pressure: Following an initial post-earnings rally, E.l.f. Beauty's shares fell 8.15% on Monday due to profit-taking and a cautious reassessment of the guidance, highlighting investor concerns about sustaining upward momentum in the near term.
- Technical Analysis: Currently, E.l.f. Beauty's stock is trading 13.9% below its 20-day SMA and 24.6% below its 100-day SMA, indicating significant short-term weakness, with key support at $69.00, suggesting traders should remain cautious.
See More
