ELF

Philip Morris International Inc. PM is likely to register growth in both top and bottom lines when it reports third-quarter 2026 earnings on Oct. 21. The Zacks Consensus Estimate for revenues is pegged at $11.42 billion, implying a 5.3% increase from the prior-year quarter's reported figure. The consensus mark for quarterly earnings has moved up a penny in the past seven days to $2.31 per share, indicating an increase of 3.1% from the figure reported in the year-ago quarter. Philip Morris delivered a trailing four-quarter average earnings surprise of 6%. Philip Morris International Inc. price-consensus-eps-surprise-chart | Philip Morris International Inc. Quote Philip Morris is likely to have benefited from continued momentum in its smoke-free business in the third quarter. Growing demand for IQOS heated tobacco products, supported by expanding consumer adoption and strong brand positioning across international markets, is likely to have driven performance. The company's focus on product innovation, portfolio expansion and effective commercial execution is also expected to have supported revenues. Philip Morris' smoke-free portfolio, comprising IQOS, ZYN and VEEV, is likely to have remained a key growth driver. Strong demand for VEEV e-vapor products across Europe and expanding international adoption of ZYN nicotine pouches might have supported category performance. In the United States, the rollout of ZYN ULTRA, additional nicotine strengths and flavors, alongside increased marketing and in-store initiatives, is likely to have strengthened consumer engagement. Philip Morris' combustible tobacco business is likely to have benefited from strong pricing and resilient demand in certain international markets. The strength of Marlboro and disciplined pricing strategies might have supported revenues and profitability. Meanwhile, a favorable smoke-free product mix, manufacturing efficiencies and cost-saving initiatives are likely to have aided gross margins, although higher commercial investments and increased manufacturing costs might have partly offset these benefits. Despite these positives, certain challenges might have weighed on quarterly performance. Excise-driven price increases in Japan and flavor restrictions in Europe likely affected IQOS volumes. Heightened U.S. nicotine pouch competition and tough ZYN shipment comparisons might have added pressure. Higher input costs, unfavorable geographic mix and currency headwinds might have constrained profitability. Our proven model does not conclusively predict an earnings beat for Philip Morris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. Philip Morris has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle. Lamb Weston Holdings, Inc. LW currently has an Earnings ESP of +2.25% and a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Lamb Weston's upcoming quarter's earnings per share is pegged at 85 cents, implying a 23.2% increase from the year-ago period. The consensus mark for Lamb Weston's quarterly revenues is pegged at $1.63 billion, which indicates an increase of 1% from the prior-year quarter. LW delivered a trailing four-quarter earnings surprise of 22.1%, on average. e.l.f. Beauty, Inc. ELF currently has an Earnings ESP of +6.10% and a Zacks Rank of 1. The Zacks Consensus Estimate for e.l.f. Beauty's upcoming quarter's EPS is pegged at 59 cents, which implies a 13.2% decrease year over year. The consensus estimate for e.l.f. Beauty's quarterly revenues is pegged at $469.2 million, which calls for 36.4% growth from the figure reported in the prior-year quarter. ELF delivered a trailing four-quarter earnings surprise of nearly 61.5%, on average. Sysco Corporation SYY currently has an Earnings ESP of +2.89% and a Zacks Rank of 2. The Zacks Consensus Estimate for Sysco's upcoming quarter's EPS is pegged at $1.16, which implies a 0.9% increase year over year. The consensus estimate for Sysco's quarterly revenues is pegged at $22.2 billion, which indicates a surge of around 5% from the figure reported in the prior-year quarter. SYY delivered a trailing four-quarter earnings surprise of 1%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Philip Morris International Inc. (PM) : Free Stock Analysis Report Sysco Corporation (SYY) : Free Stock Analysis Report e.l.f. Beauty (ELF) : Free Stock Analysis Report Lamb Weston (LW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Procter & Gamble Company PG, also known as P&G, is set to report first-quarter fiscal 2027 results on Oct. 22, before the opening bell. The company is expected to have witnessed year-over-year sales growth in the to-be-reported quarter. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $22.7 billion, indicating a 1.4% rise from the prior-year quarter's reported figure. The consensus mark for PG's earnings is pegged at $1.89 per share, indicating a decline of 5% from the year-ago quarter's actual. The consensus mark for earnings has been unchanged in the past 30 days. PG has a trailing four-quarter earnings surprise of 2.2%, on average. The company delivered an earnings surprise of 1.4% in the fourth quarter of fiscal 2026. Procter & Gamble Company (The) price-eps-surprise | Procter & Gamble Company (The) Quote Our proven model does not conclusively predict an earnings beat for Procter & Gamble this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter. Procter & Gamble currently has an Earnings ESP of -0.46% and a Zacks Rank #3. Procter & Gamble's first-quarter fiscal 2027 results are expected to reflect persistent input cost inflation, cautious consumer spending and ongoing investments in product innovation and brand-building initiatives. Higher raw material, energy and transportation expenses, alongside supply-chain-related surcharges, are likely to have weighed on profitability. On the last reported quarter's earnings call, management anticipated these cost pressures to be concentrated in the first half of fiscal 2027, projecting a decline of 5% or more in fiscal first-quarter core earnings per share. We expect the core cost of products sold to increase 4.1% year over year in first-quarter fiscal 2027. Our model predicts the core gross margin to contract 120 bps year over year to 50.3%. On the revenue front, Procter & Gamble is likely to have benefited from improving consumption trends, targeted pricing interventions and innovation-led demand. Momentum in Greater China, particularly across Baby Care, Beauty and Fabric Care, alongside sustained growth in enterprise markets, is expected to have supported organic sales. However, sluggish category growth in North America and Europe, heightened promotional activity and retailer inventory fluctuations may have constrained the overall sales performance. Our model predicts year-over-year organic sales growth of 0.5% for PG in the fiscal first quarter. Our model estimates organic sales growth of 4% for Beauty and 1% for the Fabric & Home Care segment, with flat organic sales for the Grooming segment. However, organic sales for the Health Care, and Baby, Feminine & Family Care segments are expected to decline 1% and 2%, respectively, in the fiscal first quarter. The company's integrated strategy, built on innovation, market expansion and productivity, has enabled it to adapt to shifting consumer dynamics and maintain competitiveness. Procter & Gamble's focus on strengthening core brands, expanding premium offerings and improving consumer value propositions is expected to have aided market-share recovery. Innovations such as Tide evo and upgraded Tide liquid formulations, coupled with productivity savings and disciplined marketing investments, may have provided some support to operating performance despite elevated costs. PG shares have gained 9.2% in the year-to-date period compared with the industry and Consumer Staples sector's growth of 3.8% and 7.8%, respectively. However, the stock has underperformed the S&P 500's return of 13.8%. Image Source: Zacks Investment Research From the valuation standpoint, Procter & Gamble is trading at a forward 12-month P/E multiple of 22.02X, exceeding the industry and the S&P 500's average of 18.93X and 19.81X, respectively. PG's valuation appears pricey relative to the industry. Image Source: Zacks Investment Research Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle. e.l.f. Beauty ELF currently has an Earnings ESP of +6.10% and sports a Zacks Rank #1. The company is likely to register growth in the top line when it reports second-quarter fiscal 2027 numbers. The consensus mark for revenues is pegged at $469.2 million, which indicates a rise of 36.4% from the figure reported in the year-ago quarter. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for ELF's quarterly earnings per share of 59 cents implies a decline of 13.2% from the year-ago quarter's actual. The consensus mark has moved down 3.3% in the past 30 days. ELF has a trailing four-quarter earnings surprise of 61.5%, on average. Purple Innovation PRPL currently has an Earnings ESP of +32.92% and a Zacks Rank #2. The company is likely to register growth in the bottom line when it reports third-quarter 2026 numbers. The consensus mark for revenues is pegged at $117.4 million, which indicates a decline of 1.2% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for Purple Innovation's quarterly loss per share of $1.07 implies an improvement from a loss per share of $2.00 incurred in the year-ago quarter. The consensus mark for loss per share has narrowed in the past 30 days. PRPL has a trailing four-quarter earnings surprise of 21.3%, on average. Archer Daniels Midland Company ADM currently has an Earnings ESP of +18.48% and a Zacks Rank #3. The company is likely to register growth in the top and bottom lines when it reports third-quarter 2026 numbers. The Zacks Consensus Estimate for ADM's quarterly EPS is pegged at $1.44, up 56.5% from the year-ago period. The consensus mark for EPS has moved up 3.6% in the past seven days. The consensus estimate for ADM's quarterly revenues is pegged at $22.7 billion, which implies growth of 11.3% from the prior-year quarter's actual. Archer Daniels has a trailing four-quarter earnings surprise of 11.3%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report e.l.f. Beauty (ELF) : Free Stock Analysis Report PURPLE INNOVATION, INC. (PRPL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Helen of Troy Limited HELE reported improved profitability in the second quarter of fiscal 2027, supported by strength in its Home & Outdoor business, favorable tariff-related benefits and lower interest expenses. Management also raised its annual earnings outlook. The company posted adjusted earnings of 79 cents per share, beating the Zacks Consensus Estimate of 51 cents. The bottom line increased 33.9% from 59 cents reported in the year-ago quarter. Net sales increased 2.1% year over year to $440.9 million. The Zacks Consensus Estimate was pegged at $441.5 million. Helen of Troy Limited price-consensus-eps-surprise-chart | Helen of Troy Limited Quote The top line benefited from strong demand for packs, higher international sales, assortment and distribution gains, increased closeout channel sales and new product launches. These gains were partly offset by weakness in hair appliances, prestige hair care and water filtration. The consolidated gross margin expanded 800 basis points (bps) to 52.2%, primarily reflecting favorable tariff refunds, net of higher tariff costs and lower retail trade and promotional expenses. Tariff-related effects contributed approximately 560 bps to the improvement. Inflationary product costs and unfavorable inventory obsolescence trends partly offset these gains. The consolidated selling, general and administrative (SG&A) expense ratio increased 540 bps to 46.4%, reflecting higher personnel expenses, packaging-related costs, marketing investments and divestiture litigation expenses. Adjusted operating income increased 40.9% to $37.9 million, while the adjusted operating margin expanded 240 bps to 8.6%. Adjusted EBITDA rose to $49.4 million from $36.2 million, with the corresponding margin improving 280 bps to 11.2%. Home & Outdoor net sales increased 9.2% to $227.9 million, driven by growth across OXO, Hydro Flask and Osprey. Strong demand for technical, travel and lifestyle packs, higher international sales, distribution gains and new product launches supported performance. The segment's adjusted operating income increased 39.2% to $28 million, while its adjusted operating margin expanded 270 bps to 12.3%. Favorable tariff-related effects and operating leverage supported profitability, partly offset by higher personnel, packaging and marketing costs. Beauty & Wellness net sales declined 4.5% to $213 million. Weak demand for hair appliances and prestige hair care products, competitive pressures, reduced retailer replenishment orders and lower water filtration sales weighed on the performance. These declines were partly offset by higher heater and thermometer sales, strong nail care demand and new product introductions. The segment's adjusted operating income increased 45.7% to $10 million, while its adjusted operating margin improved 160 bps to 4.7%. Helen of Troy ended the quarter with cash and cash equivalents of $22.6 million compared with $22.4 million a year ago. Total short- and long-term debt declined to $672.6 million from $893.2 million in the prior-year period. Inventory decreased to $480.3 million from $528.9 million a year earlier. Accounts receivable turnover increased to 67.6 days from 72.2 days. The company's net leverage ratio improved to 3.0 times from 3.5 times at the end of the preceding quarter. For the first six months of fiscal 2027, operating cash flow increased to $56.5 million from $47.9 million. Free cash flow rose to $38.3 million from $23 million in the year-ago period. Management narrowed its fiscal 2027 net sales guidance to $1,768-$1,822 million from $1,759-$1,831 million. Home & Outdoor sales are projected at $851-$876 million, while Beauty & Wellness sales are anticipated at $917-$946 million. Adjusted earnings guidance was raised to $3.60-$4.15 per share from $3.25-$3.75. Adjusted EBITDA is now expected between $203 million and $210 million, up from the previous projection of $190-$197 million. The company also raised its free cash flow forecast to $120-$140 million from $85-$100 million. Management expects a net leverage ratio of 2.7 times or lower by fiscal year-end. For the third quarter, management anticipates net sales of $478.3-$504.5 million and adjusted earnings of $2.05-$2.40 per share, including an estimated tariff refund benefit of 66-77 cents per share. The second-quarter results included gross pretax tariff refunds of $26.9 million, of which approximately $23 million was reinvested. This resulted in a net pretax benefit of approximately $4 million and an estimated adjusted earnings benefit of 12 cents per share. For fiscal 2027, management expects approximately $80.5 million in gross tariff refunds, with 83-88% earmarked for reinvestment in brand development, organizational capabilities and inventory improvements. The estimated net pretax benefit is $10-$14 million. The outlook incorporates continued inflationary pressures, cautious retailer inventory management, weak discretionary demand and heightened promotional activity. Higher commodity, freight and supply-chain costs remain challenges as management prioritizes brand investment, commercial execution and balance-sheet productivity. The Zacks Rank #3 (Hold) stock has rallied 28.2% over the past year against the industry's decline of 1.4%. e.l.f. Beauty, Inc. ELF, a cosmetics and skincare products company currently carries a Zacks Rank #1 (Strong Buy). ELF delivered a trailing four-quarter surprise of 61.5%, on average. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for e.l.f. Beauty's current fiscal-year sales and earnings per share (EPS) implies growth of 20.3% and 16.6%, respectively, from the year-ago figures. Mondelez International, Inc. MDLZ, a global snacking company, currently carries a Zacks Rank #2 (Buy). MDLZ delivered a trailing four-quarter earnings surprise of 5.8%, on average. The Zacks Consensus Estimate for Mondelez's current fiscal-year sales and EPS implies growth of 3.7% and 4.5%, respectively, from the year-ago figures. Mama's Creations, Inc. MAMA, a prepared-foods company focused on fresh, ready-to-eat and deli products, currently carries a Zacks Rank of 2. MAMA delivered a trailing four-quarter surprise of 121.7%, on average. The Zacks Consensus Estimate for Mama's Creations' current fiscal-year sales and EPS indicates respective increases of 30.3% and 66.7% from the year-ago period. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Helen of Troy Limited (HELE) : Free Stock Analysis Report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report e.l.f. Beauty (ELF) : Free Stock Analysis Report Mama's Creations, Inc. (MAMA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Helen of Troy (HELE) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +54.90%. A quarter ago, it was expected that this personal and household products company would post earnings of $0.02 per share when it actually produced earnings of $0.17, delivering a surprise of +750%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Helen of Troy, which belongs to the Zacks Cosmetics industry, posted revenues of $440.93 million for the quarter ended August 2026, missing the Zacks Consensus Estimate by 0.12%. This compares to year-ago revenues of $431.78 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Helen of Troy shares have added about 20.2% since the beginning of the year versus the S&P 500's gain of 14%. While Helen of Troy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Helen of Troy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.75 on $506.77 million in revenues for the coming quarter and $3.54 on $1.81 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Cosmetics is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. e.l.f. Beauty (ELF), another stock in the same industry, has yet to report results for the quarter ended September 2026. This cosmetics company is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of -13.2%. The consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. e.l.f. Beauty's revenues are expected to be $469.19 million, up 36.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Helen of Troy Limited (HELE) : Free Stock Analysis Report e.l.f. Beauty (ELF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature. In this regard, we ran a screener that yielded stocks e.l.f. Beauty ELF, IMAX IMAX, Cracker Barrel Old Country Store CBRL, Fortinet FTNT and Valero Energy VLO as the likely winners on the earnings beat potential. Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn't tell you if earnings growth has been exhibiting a decelerating trend. Also, seasonal fluctuations come into play sometimes. If a company's Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading when judging the true health of a company. On the other hand, after much brainstorming and analysis of companies' financials and initiatives, Wall Street analysts project earnings of companies. They, in fact, club their insights and a company's guidance when deriving an earnings estimate. Thus, outperforming that estimate is almost equivalent to beating the company's own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher. Now, finding stocks that have the potential to beat on the bottom line may be investors' dream but not an easy job. One way to do this is to look at the earnings surprise history of the company. An impressive track in this regard generally acts as a catalyst in sending a stock higher. It indicates the company's ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earnings beat in its next release. In order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters. Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again. Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slightly higher by setting the average earnings surprise for the last four quarters at 20%. Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger. In addition, we place a few other criteria that push up the chance of a positive surprise. Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through. Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat to happen, as per our proven model. In order to zero in on those that have long-term growth potential and high trading liquidity, we have added the following parameters too: Next 3-5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock's long-term growth prospects. Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity. A handful of criteria has narrowed down the universe from over 7,700 stocks to only 12. Here are five out of 12 stocks: e.l.f. Beauty: The Zacks Rank #1 company is a multi-brand beauty company headquartered in Oakland, CA, focused on accessible, high-quality cosmetics and skincare. You can see the complete list of today's Zacks #1 Rank stocks here. The average earnings surprise of ELF for the past four quarters is 61.50%. IMAX: The Zacks Rank #2 (Buy) company is a leading global entertainment technology company specializing in motion picture technologies and presentations. The average earnings surprise of IMAX for the past four quarters is 31.37%. Cracker Barrel Old Country Store: The Zacks Rank #1 company owns and operates full-service restaurants that combine a restaurant and a retail store in the same unit. The average earnings surprise of CBRL for the past four quarters is 228.64%. Fortinet: The company is a leader in cybersecurity, driving the convergence of networking and security. The stock has a Zacks Rank #2. The average earnings surprise of FTNT for the past four quarters is 20.34%. Valero Energy: The company, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products.The stock has a Zacks Rank #1. The average earnings surprise of VLO for the past four quarters is 26.80%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report e.l.f. Beauty (ELF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Helen of Troy Limited HELE is likely to witness top-line growth in its second-quarter fiscal 2027 earnings, to be reported on Oct. 8. The Zacks Consensus Estimate for quarterly revenues is pegged at $441.5 million, implying a 2.2% increase from the prior-year quarter's reported figure. The consensus estimate for HELE's quarterly earnings has remained unchanged in the past 30 days at 51 cents per share, indicating a 13.6% decline from the figure reported in the year-ago quarter. The company delivered a trailing four-quarter earnings surprise of almost 196.3%, on average. Helen of Troy Limited price-consensus-eps-surprise-chart | Helen of Troy Limited Quote Helen of Troy's second-quarter fiscal 2027 results are likely to reflect continued progress across its brand and commercial initiatives. The company has been focusing on consumer-led innovation, stronger brand execution and expanded distribution across key businesses. Momentum in Osprey, OXO, Hydro Flask, Braun and Olive & June, supported by new products, retail expansion and improving point-of-sale trends, might have aided sales performance during the quarter. Our model predicts a 1.4% gain in organic volumes for the fiscal second quarter. Digital and omnichannel initiatives are also likely to have remained supportive. Helen of Troy has been working to improve pricing alignment across e-commerce channels, strengthen marketplace discipline and enhance its digital shelf and retail-media effectiveness. The company has also been linking demand signals, promotional plans and inventory decisions more closely, while maintaining a focus on inventory optimization and working-capital efficiency. These efforts might have supported execution during the quarter. However, the fiscal second-quarter performance might have been constrained by a challenging demand environment. On its first-quarter fiscal 2027 earnings call, management continued to anticipate inflationary pressures, softer discretionary demand, cautious retailer behavior and elevated promotional intensity. Pricing elasticity has also remained a concern in certain categories, particularly across some core beauty brands. Moreover, the earlier timing of Prime Day had shifted some sales into the fiscal first quarter, which might have weighed modestly on the fiscal second-quarter revenues. Profitability is likely to have faced pressure from higher product costs, commodity inflation, unfavorable Chinese yuan movements and increased inbound and outbound freight expenses. Costs to secure goods amid supply-chain disruption might also have weighed on margins. We expect adjusted SG&A, as a percentage of sales, to expand 220 basis points to 40.1%, while the adjusted operating margin is projected to contract 20 basis points to 6% in the fiscal second quarter. Our proven model does not conclusively predict an earnings beat for Helen of Troy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. Helen of Troy currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle. e.l.f. Beauty, Inc. ELF currently has an Earnings ESP of +6.10% and a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for e.l.f. Beauty's upcoming quarter's earnings per share is pegged at 59 cents, which implies a 13.2% decrease year over year. The consensus estimate for e.l.f. Beauty's quarterly revenues is pinned at $469.2 million, which calls for 36.4% growth from the figure reported in the prior-year quarter. ELF delivered a trailing four-quarter earnings surprise of nearly 61.5%, on average. Sysco Corporation SYY currently has an Earnings ESP of +2.89% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $22.2 billion, which implies almost 5% growth from the figure reported in the prior-year quarter. The Zacks Consensus Estimate for Sysco's upcoming quarter's EPS is pegged at $1.16, which calls for a 0.9% increase from the year-ago period figure. SYY delivered a trailing four-quarter earnings surprise of nearly 1%, on average. The Kraft Heinz Company KHC currently has an Earnings ESP of +2.47% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter's revenues is pegged at about $6 billion, indicating a 3.1% decline from the figure reported in the prior-year quarter. The consensus estimate for The Kraft Heinz Company's earnings is pegged at 43 cents per share, implying a decrease of 29.5% from the year-ago quarter. KHC delivered a trailing four-quarter earnings surprise of 9.6%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Helen of Troy Limited (HELE) : Free Stock Analysis Report Sysco Corporation (SYY) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report e.l.f. Beauty (ELF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? e.l.f. Beauty (ELF), which belongs to the Zacks Cosmetics industry, could be a great candidate to consider. This cosmetics company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 78.41%. For the last reported quarter, e.l.f. Beauty came out with earnings of $1.75 per share versus the Zacks Consensus Estimate of $0.71 per share, representing a surprise of 146.48%. For the previous quarter, the company was expected to post earnings of $0.29 per share and it actually produced earnings of $0.32 per share, delivering a surprise of 10.34%. Thanks in part to this history, there has been a favorable change in earnings estimates for e.l.f. Beauty lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. e.l.f. Beauty has an Earnings ESP of +6.10% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report e.l.f. Beauty (ELF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

e.l.f. Beauty stock has delivered a very strong 5 year return, yet current checks point to a company that looks expensive on most traditional metrics even though the latest intrinsic value estimate suggests the shares are trading close to fair value. Over the past 5 years, e.l.f. Beauty has returned about 262.2%, which sets a high bar for any further gains to be supported by fundamentals. Recent moves such as the price cuts funded by tariff refunds and the planned European retail expansion of rhode can support growth expectations. At the same time, any pressure on pricing power or execution around new markets may weigh on how much investors are willing to pay for that growth. The broader valuation checks, including a low value score of 0 out of 6 and market multiples that screen as overvalued with an extreme gap, point to e.l.f. Beauty as a stock that is not a clear bargain at current levels. The issue now is whether the current US$109.67 share price for e.l.f. Beauty already fully reflects its intrinsic value estimate from the Discounted Cash Flow (DCF) model, or if there is still room for a sensible margin of safety. Spot other beauty and consumer stocks where expectations and price are still aligned by scanning our hand picked list of 47 high quality undervalued stocks. The Discounted Cash Flow model values e.l.f. Beauty by projecting future cash flows and discounting them back to today. On this view, the company’s latest twelve month free cash flow is about $276 million, with the model assuming that cash flows continue growing rather than shrinking from here. Those cash flows translate to an estimated intrinsic value of about $104.90 per share, compared with the recent $109.67 share price. That implies e.l.f. Beauty screens roughly 4.5% overvalued on this cash flow based approach, which is effectively within a reasonable band around fair value rather than a clear mispricing. Because the planned European retail expansion of rhode with Sephora is already well flagged, the small premium to intrinsic value suggests investors are paying up in advance for that growth rather than waiting to see how it plays through actual cash generation. Overall, the Discounted Cash Flow workup suggests e.l.f. Beauty looks about fairly valued at current levels. e.l.f. Beauty is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for e.l.f. Beauty. The P/E ratio is a useful cross check for e.l.f. Beauty because earnings remain a key anchor for how investors value the stock. On this measure, e.l.f. Beauty trades on about 108.6x earnings, which is far above the Personal Products industry average of 18.1x and also well above the peer average of 12.4x. That already signals investors are willing to pay a very high premium for each dollar of current earnings. The fair P/E multiple implied by the broader model is about 25.3x, which is far below the current 108.6x level. Because the gap is very large, the fair multiple is better viewed as a warning that the model is heavily penalising the stock on its risk and earnings profile rather than as a precise target. Even with recent interest around initiatives such as the rhode expansion, the numbers here still point to a market price that already assumes a lot of good news. On P/E, e.l.f. Beauty stock screens as clearly overvalued relative to what the model suggests would be a more typical earnings multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for e.l.f. Beauty pick up where this valuation puzzle leaves off by spelling out which combinations of future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price on the Community page. Each narrative links a fair value estimate to a specific set of potential catalysts and risks, so you can see which story about e.l.f. Beauty's future appears to be unfolding over time. Community views on e.l.f. Beauty are wide apart, with one camp seeing meaningful upside and another focused on valuation risk. Bull case: 11% undervalued Read the full Bull Case to see why e.l.f. Beauty could be undervalued Bear case: 39% overvalued Read the full Bear Case to see why e.l.f. Beauty could be overvalued Do you think there's more to the story for e.l.f. Beauty? Head over to our Community to see what others are saying! For e.l.f. Beauty, the Discounted Cash Flow (DCF) work suggests the stock now trades close to intrinsic value, so it no longer screens as obviously cheap. The market multiple view is very different and flags e.l.f. as clearly overvalued, with the extreme gap driven by how high the current P/E is versus peers. That tension reflects investors paying a sizable premium for growth and execution, especially around rhode and international expansion. The key question from here is whether the company can deliver enough durable earnings and cash flow to justify that premium, or whether the multiple eventually compresses toward more typical levels. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ELF. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

A month has gone by since the last earnings report for e.l.f. Beauty (ELF). Shares have added about 16.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is e.l.f. Beauty due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for e.l.f. Beauty before we dive into how investors and analysts have reacted as of late. e.l.f. Beauty began fiscal 2027 on a strong note, supported by exceptional demand for Rhode, robust international growth and continued momentum across its diversified beauty portfolio. The company also raised its full-year sales and earnings outlook.ELF posted adjusted earnings of $1.75 per share, which jumped significantly from the year-ago period’s earnings of 89 cents and also beat the Zacks Consensus Estimate of 71 cents.Net sales rose 36% to $479.4 million, surpassing the consensus estimate of $427 million. The company registered its 30th consecutive quarter of net sales growth, representing more than seven continuous years of expansion. Sales benefited from strength across retailer and e-commerce channels in the United States and international markets.U.S. net sales increased 29%, while international net sales advanced 61%. Pricing and product mix contributed approximately 39 percentage points to growth. Unit volumes reduced growth by roughly three percentage points. Rhode contributed approximately $160 million in first-quarter net sales, exceeding management’s expectations. The brand benefited from solid retail demand and a record-breaking summer innovation launch through rhodeskin.com.The summer launch generated $27 million in direct-to-consumer sales in a single day. More than 70% of sales came from existing consumers, while the event attracted 90,000 new customers. Rhode is scheduled to launch with Sephora across 19 European countries in September. Gross margin expanded approximately 1,400 basis points year over year to 83%. The increase included a benefit of nearly 1,050 basis points from approximately $50 million of IEEPA tariff refunds.Excluding the refund benefit, gross margin still improved about 350 basis points, driven by pricing and lower year-over-year tariff rates. Management plans to reinvest the refunds during the remainder of fiscal 2027, primarily through selected price reductions and increased marketing spending.Adjusted selling, general and administrative expenses surged to $260.7 million from $177.3 million. Adjusted SG&A represented 54% of net sales compared with 50% in the prior-year quarter, reflecting investments in personnel, infrastructure, merchandising and distribution.Marketing and digital spending accounted for 22% of net sales, unchanged year over year but below management’s expectations due to the timing of expenditures. Adjusted EBITDA surged 93% to $168.2 million and represented 35% of sales. Excluding tariff refunds, adjusted EBITDA grew 36%. Cash and cash equivalents totaled $344.2 million at quarter-end, and total debt was $834.2 million.Net cash provided by operating activities increased to $111.7 million during the first quarter.The company repurchased approximately $50 million of common stock and repaid $7.5 million of long-term debt during the quarter. Management now expects fiscal 2027 net sales of $1,938-$1,968 million, implying growth of 18-20%. The prior outlook called for sales of $1,835-$1,865 million and growth of 12-14%.Adjusted EBITDA is projected at $401-$407 million, while adjusted net income is expected to be $212-$215 million. Adjusted earnings are forecast at $3.50-$3.55 per share, up from the previous guidance of $3.27-$3.32. For the second quarter, management expects total net sales growth in the mid-30% range. Since the earnings release, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -21.54% due to these changes. At this time, e.l.f. Beauty has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the fifth quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, e.l.f. Beauty has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report e.l.f. Beauty (ELF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ULTA jumps 4% and ELF rises 5% Monday, reversing Friday's selloffs after both beat Q2 estimates and raised full-year guidance. Beauty gains outperform a falling SPY and XRT, while TGT drops 1% after ending its Ulta shop-in-shop and launching its own Beauty Studio. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. Beauty/cosmetics stocks are reversing Friday's post-earnings decline midday Monday, as two of the sector's most-watched names lead retail higher against a softer session for large-cap benchmarks. The rebound comes after both companies cleared quarterly estimates and raised full-year outlooks, only to see their shares sold heading into the weekend. Ulta Beauty (NASDAQ:ULTA) stock is up 4% to $538, while e.l.f. Beauty (NYSE:ELF) stock is climbing 5% to $108.92. Also framing the retail read, the SPDR S&P Retail ETF (NYSEARCA:XRT) is slipping 0.2% to $86.72. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.46% to $765.80, marking today's beauty bid as a targeted sector move rather than a broad risk-on rally. Ulta Beauty stock fell 4% to $517.18 Friday despite a Q2 2026 beat and a raised full-year guide, a decline covered in Friday's Ulta Beauty and e.l.f. Beauty pullback recap. Reporting Monday attributes part of the advance to an analyst upgrade, though the upgrading firm hasn't been confirmed and isn't being named here. Buyers are effectively taking the other side of Friday's fade, and the tone shift is testing whether that initial reaction was an overshoot on otherwise clean prints. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. In its Q2 2026 report, Ulta Beauty posted net income of $282 million, or $6.55 per share, against $260.9 million and $5.78 a year earlier, clearing the $6.20 consensus. Revenue grew 8.9% to $3.04 billion versus $2.99 billion consensus, and comparable sales rose 3.8% against the 2.3% analysts expected. The mix of top-line growth and above-plan comps is what bulls want to see from a specialty retailer navigating an uneven consumer. Ulta Beauty raised full-year EPS guidance to $28.70 to $29 from $28.36 to $28.80, its annual sales growth target to 6.7% to 7.2% from 6% to 7%, and its comp sales guidance to 3.2% to 3.7% from 2.5% to 3.5%. CEO Kecia Steelman stated the team is "executing with discipline and translating our Ulta Beauty Unleashed strategy into tangible benefits for our guests." Ulta Beauty and e.l.f. Beauty are rebounding from opposite starting points, and that divergence is the trade worth understanding. e.l.f. Beauty stock was up 37% year to date (YTD) through Friday's close, while Ulta Beauty stock was down 14% YTD through the same session. Similar-sized session pops carry very different meaning for each name, with e.l.f. Beauty extending a leadership run and Ulta Beauty trying to reclaim ground lost through the first eight months of the year. Target (NYSE:TGT) stock forms the third leg of today's beauty story. Target stock is down 1% to $161.52, even after finishing Friday up 71% YTD. The Ulta Beauty shop-in-shop partnership inside Target stores concluded in August after the two companies chose not to renew it, and Target is now launching its own Target Beauty Studio concept in more than 600 stores with dedicated beauty advisers. Target is sliding while both beauty pure-plays rally, which sharpens the read on where beauty share is being allocated in a post-partnership landscape. Investors can watch for whether Ulta Beauty stock reclaims its pre-earnings level of $544.99 and whether e.l.f. Beauty stock holds above $105 into the close. With XRT lower and SPY in the red, today's beauty bid reads like a focused sector rotation, and that raises the bar for follow-through into midweek trading if the broader retail sector doesn't join in. Position sizing matters here given the volatility around both names, and readers adding exposure should treat single-stock retail rebounds as tactical setups rather than trend confirmation. The unnamed upgrade adds momentum without a verifiable analyst thesis, so leaning too hard on today's move carries execution risk if a formal research note doesn't surface in the coming sessions. A modest starter position, sized to survive another gap lower, is the more defensible way to engage a same-day reversal like this one. The next scheduled catalyst for Ulta Beauty is its Q3 report, and e.l.f. Beauty holders can look to the company's next quarterly release for confirmation that its raised fiscal 2027 outlook is translating into sustained retailer sell-through. Between now and then, retail sector data and Target Beauty Studio's early rollout metrics will help set the tone for how beauty spending is being divided among the three names on the marquee today. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Ulta Beauty beat EPS by $0.35, raised full-year guidance, yet sank 6%, dragging e.l.f. Beauty down 2% on sympathy selling. XRT rose 0.7% and SPY held flat Friday, isolating Ulta Beauty's drop as single-name profit-taking, not a sector or macro event. A $500 support zone, 20x P/E, and $1.8 billion buyback program offer potential downside buffers for patient investors. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. Beauty retail is delivering a curious reaction this morning as the sector's dominant name posts strong quarterly numbers yet loses ground in heavy trading. The reaction reads as classic profit taking after a prior run, since nothing in the release accounts for a decline of this size. Ulta Beauty (NASDAQ:ULTA) stock is down 4% to $517.18 in Friday morning trading. The company delivered a top and bottom line beat plus a full year guidance raise, adding to a strong recent run heading into the report. Also feeling the tug, e.l.f. Beauty (NYSE:ELF) stock is down 2% to $103.96 as sympathy selling spreads across specialty beauty. Even after this pullback, e.l.f. Beauty stock was up 40% year to date (YTD) through Thursday's close, so peer weakness is trimming a strong recent run rather than reversing it. Reporting after Thursday's close, Ulta Beauty posted net income of $282 million, or $6.55 per share, against $260.9 million and $5.78 per share a year earlier, clearing the $6.20 analyst estimate. Revenue grew 8.9% to $3.04 billion, above the $2.99 billion consensus. Comparable store sales advanced 3.8%, well ahead of the 2.3% analysts expected, with fragrance leading category strength and e-commerce delivering high teen sales growth. Management cited a sixth consecutive quarter of double-digit e-commerce sales growth and continued momentum in K-Beauty. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. Management then raised full year guidance in three places. Full year earnings per share guidance moved to $28.70 to $29 from $28.36 to $28.80, the annual sales growth target moved to 6.7% to 7.2% from 6% to 7%, and comparable store sales guidance moved to 3.2% to 3.7% from 2.5% to 3.5%. CEO Kecia Steelman stated the company is strengthening its competitive position through a focus on innovation, value and convenience. Ulta Beauty operates more than 1,500 domestic stores and 88 international locations, expanding abroad through its Space NK subsidiary in the U.K. and Ireland, a joint venture in Mexico and a franchise in the Middle East. The SPDR S&P Retail ETF (NYSEARCA:XRT) is up 0.7% to $87.24 this session, a clear divergence from Ulta Beauty stock. That gap matters because it rules out a broader retail selloff as the trigger for today's move. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.49% at $774.92, indicating the wider market may be offering a mild macro headwind. Still, today's price action mainly reads as a single name repricing tied to positioning rather than a sector or index catalyst. e.l.f. Beauty stock is caught in a beauty-focused downdraft, though its 2% slide is far milder than Ulta Beauty stock's decline. That relative resilience aligns with e.l.f. Beauty's own recent momentum, since the shares had been running well ahead of the beauty complex heading into Friday. Selling into a beat isn't new for Ulta Beauty stock. The prior first quarter report also produced a beat and a 4.78% same day decline, and the Q2 2026 print showed a 14.61% surprise paired with a 7.14% same day drop. The pattern reflects elevated expectations after strong pre-report runs. Ulta Beauty stock was down 11% year over year (YoY) at Thursday's close, while SPY was up 13% YTD over the same stretch. That relative underperformance frames why any hint of a softer second half guide can prompt profit taking even when headline numbers clear the bar. Traders can watch for a stabilization near the $500 area, a psychological level that lines up with Ulta Beauty stock's 50-day moving average near $494.59 and could set the tone for how the reaction resolves into next week. Ulta Beauty carries a P/E ratio of 20x, which may cap further downside for value-oriented buyers. The bull case rests on the raised outlook, an expanded $1.80 billion buyback target, and durable fragrance and K-Beauty momentum. The bear case leans on a more measured second half comp guide of 2% to 3%, a promotional environment that ticked up, and a mass makeup category still running flat. Given the size of today's move against a clean report, ULTA investors should keep their positions modest and let the price action settle before adding exposure. A staged approach, sized to their risk tolerance, is preferable to chasing a name that just raised guidance under a single session of profit-taking pressure. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ulta Beauty didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.