e.l.f. Beauty (ELF-N)

ELF is trading at 42.7x Forward P/E, and the growth over the next few years is expected to be solid, above 15%. In the last five years, ELF’s valuation has ranged from a 26.5x forward P/E to as high as 52.7x. We think the current valuation is fair, but we would not consider it to be an aggressive buy yet.
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One of the most-shortest stocks; anything bad that happens in the cosmetics group and this gets punished. Buy in the first 14 points down or wait till Thursday.

Low cost makeup provider. Success in copying popular brands and selling on Tiktok/eCommerce. Questions on sharp rise in performance (very competitive in retail space), and whether it is sustainable. Cheap knock off products are difficult to sustain. Unsure on future of business. 

A quality growth name. Take profits if this doubles, then take more profits if it doubles again. He prefers to hold onto great growth companies.

#1 in cosmetics, getting stronger in this ranking.  ELF is a long-time favourite of his.

Discount makeup brand. Moving well, #3 in the US. Market share hovering around 10%. Makeup sales tend to hold up in a recession. Usually beats on earnings. Target price of $145, so potentially 20% upside. Growth in earnings and sales. Raised guidance. A meaningful opportunity. Likes the business model.

Last Wednesday they posted a monster 25 cent earnings beat and more than doubled expected earnings estimate.