ELF shares: Explosive growth despite a high cost base – is it still worth getting involved now?

ELF shares: Explosive growth despite a high cost base – is it still worth getting involved now?

According to a report by www.boerse-online.de, the cosmetics share of e.l.f. Beauty has experienced explosive growth in recent years. The stock's price rose by an incredible 1,800 percent, largely due to the company's strong presence on social media, such as TikTok. The company has also invested in digital marketing and relies on influencer advertising on platforms such as Instagram, TikTok and YouTube. In addition, e.l.f. Beauty has a rewards program for customer loyalty and regularly brings new products onto the market.

If you analyze the figures for ELF shares, experts expect robust returns over the next ten years because the beauty products are relatively resistant to recession. The company is also expected to gain a foothold in emerging markets, which could lead to strong earnings growth. In the second quarter of fiscal year 2024, e.l.f. Beauty already reported a 76 percent increase in sales and an adjusted net profit of $47.1 million. Wall Street analysts forecast that ELF stock could increase its adjusted earnings to $3.22 per share in fiscal 2025.

The impact on the market and industry is significant as e.l.f. Beauty has strong growth potential in emerging markets and a strong digital presence due to its commitment to offering high quality at affordable prices. This could lead to higher margins and further growth. Despite the impressive share price growth, analysts currently see an average of around eight percent upside potential, which suggests that the share's growth potential may be somewhat slowed.