Investment Opportunities in E.l.f. Beauty and MercadoLibre
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17 hours ago
0mins
Should l Buy ELF?
Source: Fool
- E.l.f. Beauty Growth Momentum: E.l.f. Beauty has rapidly ascended in the cosmetics industry, reporting a 38% year-over-year revenue increase to $489.5 million in Q3 2026, prompting management to raise full-year outlooks, indicating strong market demand and brand appeal.
- Luxury Market Expansion: The recent acquisition of luxury brand Rhode marks E.l.f.'s first venture into premium cosmetics, with a record-breaking launch in the UK, which is expected to enhance its brand image and market share significantly.
- MercadoLibre E-commerce Surge: MercadoLibre experienced a 49% year-over-year revenue growth in Q3 2025, with expectations that e-commerce penetration will double in the coming years, showcasing substantial market potential and robust growth momentum in Latin America.
- Fintech User Surge: MercadoLibre's monthly active users increased by 29% year-over-year to 72 million, particularly with the launch of a new credit card service in Argentina, highlighting vast opportunities and market demand in the fintech sector.
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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: 91.130
Low
85.00
Averages
112.21
High
136.00
Current: 91.130
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.
Investment Opportunities in E.l.f. Beauty and MercadoLibre
- E.l.f. Beauty Growth Momentum: E.l.f. Beauty has rapidly ascended in the cosmetics industry, reporting a 38% year-over-year revenue increase to $489.5 million in Q3 2026, prompting management to raise full-year outlooks, indicating strong market demand and brand appeal.
- Luxury Market Expansion: The recent acquisition of luxury brand Rhode marks E.l.f.'s first venture into premium cosmetics, with a record-breaking launch in the UK, which is expected to enhance its brand image and market share significantly.
- MercadoLibre E-commerce Surge: MercadoLibre experienced a 49% year-over-year revenue growth in Q3 2025, with expectations that e-commerce penetration will double in the coming years, showcasing substantial market potential and robust growth momentum in Latin America.
- Fintech User Surge: MercadoLibre's monthly active users increased by 29% year-over-year to 72 million, particularly with the launch of a new credit card service in Argentina, highlighting vast opportunities and market demand in the fintech sector.
See More
E.l.f. Beauty and MercadoLibre Strategic Expansion
- E.l.f. Beauty Growth Momentum: E.l.f. Beauty reported a 38% year-over-year revenue increase to $489.5 million in Q3 2026, prompting management to raise its full-year outlook, indicating strong market demand and diverse growth drivers.
- Luxury Market Expansion: The recent acquisition of luxury brand Rhode, led by model Hailey Bieber, marks E.l.f.'s first foray into premium cosmetics, with its UK launch being termed 'record-breaking', which is expected to enhance brand image and market share.
- MercadoLibre E-commerce Growth: MercadoLibre's revenue surged 49% year-over-year in Q3 2025, with management forecasting a doubling of e-commerce penetration in the coming years, indicating significant market potential, further stimulated by lowering the free shipping threshold in Brazil, leading to a 29% growth in unique buyers.
- Fintech Potential: MercadoLibre's monthly active users increased by 29% year-over-year to 72 million, showcasing vast opportunities in the fintech space, particularly in Argentina and Brazil's credit card markets, which enhances its competitive edge in integrated services.
See More
Three Attractive Consumer Stocks to Consider
- MercadoLibre Investment Opportunity: Investing $2,000 in MercadoLibre (MELI) presents a compelling case as its current P/E ratio of 33 is projected to drop to 23.5 by 2027, with the company achieving over 30% revenue growth each quarter for nearly seven years, indicating strong operational leverage and competitive positioning.
- Amazon's Market Leadership: Amazon (AMZN), with a market cap of $2.2 trillion, is leveraging its largest logistics network and AI technology to drive robust operating income growth, with a forward P/E ratio expected to be below 26 times by 2026, highlighting its significant growth potential in both e-commerce and cloud computing.
- e.l.f. Beauty's Growth Potential: e.l.f. Beauty (ELF) is trading at a forward P/E of 26 and a PEG ratio below 0.45, indicating undervaluation, while gaining market share in the U.S. cosmetics sector, with further growth anticipated through partnerships with Ulta Beauty and expansion into Germany.
- Acquisition Opportunity with Rhode Brand: The recently acquired Rhode brand by e.l.f. has achieved $200 million in sales within three years, and with e.l.f.'s backing, it is expected to significantly enhance brand value through increased distribution and marketing efforts, making it a strong investment choice.
See More
Retail Earnings Will Highlight the Importance of Execution Like Never Before
- Earnings Reports: Walmart and Wayfair are scheduled to report their earnings on Thursday.
- Retail Challenges: The current retail environment highlights the importance of brand power and operational efficiency as key strategies to navigate volatility.
See More
Investment Analysis of e.l.f. Beauty Stock
- Sales Growth Outlook: e.l.f. Beauty anticipates a net sales increase of at least 22% year-over-year for fiscal 2026, having already completed three quarters with a 21% sales growth, indicating strong market demand driven by the appeal of its low-priced products, which enhances investor confidence.
- Price Strategy Adjustment: Despite raising product prices by approximately 15% on August 1, e.l.f. Beauty's products remain about 20% cheaper than competing mass-market brands, allowing the company to boost sales and margins while solidifying its position as a low-cost leader in the market.
- Profitability and Acquisition Impact: Although e.l.f. Beauty's profits have declined due to tariff impacts, the company continues to grow at double-digit rates while making acquisitions, demonstrating resilience amid macroeconomic volatility and still achieving profitability according to Generally Accepted Accounting Principles (GAAP).
- Valuation and Market Performance: e.l.f. Beauty's stock price has dropped significantly from its highs, currently trading at a price-to-earnings (P/E) ratio of 42, which, while considered expensive, is below its average valuation since early 2022; if profits return to normalized levels, the valuation should further decrease, attracting long-term investor interest.
See More
e.l.f. Beauty Maintains Low-Cost Leadership Despite Price Increase
- Sales Growth Outlook: e.l.f. Beauty anticipates a net sales increase of at least 22% year-over-year for fiscal 2026, having completed three quarters with a 21% sales rise, indicating strong market demand driven by the appeal of its low-priced products, which boosts investor confidence.
- Price Strategy Adjustment: On August 1, e.l.f. Beauty raised its product prices by approximately 15%, yet its offerings remain about 20% cheaper than competing mass-market brands, allowing the company to enhance sales and margins while maintaining its market leadership position.
- Profitability Challenges: While e.l.f. Beauty remains profitable, its gross margin has been pressured by tariffs, particularly as its products are manufactured in heavily impacted China, and the $1 billion acquisition of beauty brand rhode has also affected its financial statements in the short term.
- Valuation Analysis: e.l.f. Beauty's stock has significantly declined from its highs, currently trading at a P/E ratio of 42, which, although considered expensive, is below its average valuation since early 2022, suggesting that if profits return to normalized levels, the valuation could further decrease.
See More
Investment Opportunities in E.l.f. Beauty and MercadoLibre
- E.l.f. Beauty Growth Momentum: E.l.f. Beauty has rapidly ascended in the cosmetics industry, reporting a 38% year-over-year revenue increase to $489.5 million in Q3 2026, prompting management to raise full-year outlooks, indicating strong market demand and brand appeal.
- Luxury Market Expansion: The recent acquisition of luxury brand Rhode marks E.l.f.'s first venture into premium cosmetics, with a record-breaking launch in the UK, which is expected to enhance its brand image and market share significantly.
- MercadoLibre E-commerce Surge: MercadoLibre experienced a 49% year-over-year revenue growth in Q3 2025, with expectations that e-commerce penetration will double in the coming years, showcasing substantial market potential and robust growth momentum in Latin America.
- Fintech User Surge: MercadoLibre's monthly active users increased by 29% year-over-year to 72 million, particularly with the launch of a new credit card service in Argentina, highlighting vast opportunities and market demand in the fintech sector.
See More
E.l.f. Beauty and MercadoLibre Strategic Expansion
- E.l.f. Beauty Growth Momentum: E.l.f. Beauty reported a 38% year-over-year revenue increase to $489.5 million in Q3 2026, prompting management to raise its full-year outlook, indicating strong market demand and diverse growth drivers.
- Luxury Market Expansion: The recent acquisition of luxury brand Rhode, led by model Hailey Bieber, marks E.l.f.'s first foray into premium cosmetics, with its UK launch being termed 'record-breaking', which is expected to enhance brand image and market share.
- MercadoLibre E-commerce Growth: MercadoLibre's revenue surged 49% year-over-year in Q3 2025, with management forecasting a doubling of e-commerce penetration in the coming years, indicating significant market potential, further stimulated by lowering the free shipping threshold in Brazil, leading to a 29% growth in unique buyers.
- Fintech Potential: MercadoLibre's monthly active users increased by 29% year-over-year to 72 million, showcasing vast opportunities in the fintech space, particularly in Argentina and Brazil's credit card markets, which enhances its competitive edge in integrated services.
See More
Three Attractive Consumer Stocks to Consider
- MercadoLibre Investment Opportunity: Investing $2,000 in MercadoLibre (MELI) presents a compelling case as its current P/E ratio of 33 is projected to drop to 23.5 by 2027, with the company achieving over 30% revenue growth each quarter for nearly seven years, indicating strong operational leverage and competitive positioning.
- Amazon's Market Leadership: Amazon (AMZN), with a market cap of $2.2 trillion, is leveraging its largest logistics network and AI technology to drive robust operating income growth, with a forward P/E ratio expected to be below 26 times by 2026, highlighting its significant growth potential in both e-commerce and cloud computing.
- e.l.f. Beauty's Growth Potential: e.l.f. Beauty (ELF) is trading at a forward P/E of 26 and a PEG ratio below 0.45, indicating undervaluation, while gaining market share in the U.S. cosmetics sector, with further growth anticipated through partnerships with Ulta Beauty and expansion into Germany.
- Acquisition Opportunity with Rhode Brand: The recently acquired Rhode brand by e.l.f. has achieved $200 million in sales within three years, and with e.l.f.'s backing, it is expected to significantly enhance brand value through increased distribution and marketing efforts, making it a strong investment choice.
See More
Retail Earnings Will Highlight the Importance of Execution Like Never Before
- Earnings Reports: Walmart and Wayfair are scheduled to report their earnings on Thursday.
- Retail Challenges: The current retail environment highlights the importance of brand power and operational efficiency as key strategies to navigate volatility.
See More
Investment Analysis of e.l.f. Beauty Stock
- Sales Growth Outlook: e.l.f. Beauty anticipates a net sales increase of at least 22% year-over-year for fiscal 2026, having already completed three quarters with a 21% sales growth, indicating strong market demand driven by the appeal of its low-priced products, which enhances investor confidence.
- Price Strategy Adjustment: Despite raising product prices by approximately 15% on August 1, e.l.f. Beauty's products remain about 20% cheaper than competing mass-market brands, allowing the company to boost sales and margins while solidifying its position as a low-cost leader in the market.
- Profitability and Acquisition Impact: Although e.l.f. Beauty's profits have declined due to tariff impacts, the company continues to grow at double-digit rates while making acquisitions, demonstrating resilience amid macroeconomic volatility and still achieving profitability according to Generally Accepted Accounting Principles (GAAP).
- Valuation and Market Performance: e.l.f. Beauty's stock price has dropped significantly from its highs, currently trading at a price-to-earnings (P/E) ratio of 42, which, while considered expensive, is below its average valuation since early 2022; if profits return to normalized levels, the valuation should further decrease, attracting long-term investor interest.
See More
e.l.f. Beauty Maintains Low-Cost Leadership Despite Price Increase
- Sales Growth Outlook: e.l.f. Beauty anticipates a net sales increase of at least 22% year-over-year for fiscal 2026, having completed three quarters with a 21% sales rise, indicating strong market demand driven by the appeal of its low-priced products, which boosts investor confidence.
- Price Strategy Adjustment: On August 1, e.l.f. Beauty raised its product prices by approximately 15%, yet its offerings remain about 20% cheaper than competing mass-market brands, allowing the company to enhance sales and margins while maintaining its market leadership position.
- Profitability Challenges: While e.l.f. Beauty remains profitable, its gross margin has been pressured by tariffs, particularly as its products are manufactured in heavily impacted China, and the $1 billion acquisition of beauty brand rhode has also affected its financial statements in the short term.
- Valuation Analysis: e.l.f. Beauty's stock has significantly declined from its highs, currently trading at a P/E ratio of 42, which, although considered expensive, is below its average valuation since early 2022, suggesting that if profits return to normalized levels, the valuation could further decrease.
See More
