Investors may wonder if there is a way of buying stocks that have already had a massive run. The risk of buying at a much higher price may be overwhelming. But leading stocks have been known to resume their runs. Finding proper bases and buy points is one effective and time-tested way of taking an initial position.
ELF Beauty has regained its 50-day moving average after March-quarter results easily topped expectations late Wednesday. Shares are approaching a buy point of 221.83, which is also its all-time high, according to IBD MarketSurge. ELF stock is today's selection for IBD 50 Stocks To Watch.
Fiscal fourth-quarter sales rose 71% to $321.1 million, while earnings of 53 cents per share were 26% higher than the prior year. The company gave an outlook for the full fiscal year that forecasts sales of $1.24 billion at the midpoint, with earnings of $3.23 per share. That was lower than analysts' estimates of $3.41 per share, according to FactSet.
ELF stock holds a Composite Rating of 95 and an EPS Rating of 98. The Relative Strength Rating shows that stock has outperformed 94% of stocks in the Investors' Business Daily database. The beauty products maker ranks second in the cosmetics and personal care industry group.
ELF makes beauty and personal care products under brands such as e.l.f. Cosmetics, Naturium, Well People and Keys Soulcare.
The stock has had a meteoric run since the initial listing in 2016 at 17 per share. As of Friday's closing price of 191.42, shares had a gain of 1,026% since they went public.
Sales growth has ranged between 26% and 85% in the past eight quarters, while earnings growth has ranged from 26% to 223%.
Mutual funds own 65% of shares outstanding. More funds have been net buyers over the past seven quarters and in recent weeks.
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