e.l.f. Beauty stock fell 13% in May despite beating earnings expectations with 35% revenue growth and strong performance from its Rhode luxury brand acquisition. The decline was driven by uncertainty around tariff impacts, which management expects to improve in 2027. The stock trades at a low valuation of 14x forward sales and is down 32% year-to-date.

e.l.f. Beauty reported strong Q4 fiscal 2026 revenue growth of 35% to $449.3 million, driven primarily by its Rhode acquisition which contributed $113 million and grew 80% during the fiscal year. However, the namesake e.l.f. brand faced headwinds with organic growth of only 1% and unit volume declines following a price increase. The company projects fiscal 2027 revenue growth of 14-17% and is trading at an attractive forward P/E of 15.5, with analyst sentiment turning positive due to Rhode's expansion potential and anticipated tariff reductions.

e.l.f. Beauty stock has fallen nearly 65% from late 2025 highs but shows signs of recovery potential. Despite tepid fiscal 2027 guidance reflecting intentional price markdowns, favorable test results showed a 22% price reduction led to 35% volume growth. Technical indicators, analyst sentiment, and strong institutional ownership (95%) suggest limited downside and potential for high-double-digit rebound. The company reported solid Q4 2026 results with 35% revenue growth, though guidance below consensus triggered a stock rebound, indicating market readiness for reversal.

U.S. stock futures showed mixed performance on Thursday following Nvidia's strong Q1 earnings and positive Q2 guidance. While the Dow Jones and S&P 500 gained slightly, the Nasdaq fell modestly. Intuit tumbled 13.5% despite beating earnings due to announced workforce cuts, while e.l.f. Beauty surged 9% on better-than-expected results. Nebius Group and Bloom Energy rose after announcing a 10-year partnership for AI infrastructure deployment.

e.l.f. Beauty reported strong Q4 results, beating analyst estimates with EPS of 32 cents (vs. 29 cents expected) and revenue of $449.29 million (vs. $422.93 million expected), up 35% year-over-year. The Rhode acquisition, which contributed 34 percentage points to growth, delivered over $500 million in global retail sales. For fiscal 2027, the company expects adjusted EPS of $3.27-$3.32 and revenue of $1.835-$1.865 billion, slightly below analyst expectations. Shares rose 8.14% in premarket trading.

e.l.f. Beauty reported Q4 earnings of $0.32 per share, beating the consensus estimate of $0.29, with revenue of $449.29 million, up 35.07% year-over-year and exceeding the Street estimate of $422.93 million. The company achieved a 140 basis point gross margin improvement to 73%. However, fiscal 2027 guidance fell short of analyst expectations, with adjusted EPS guidance of $3.27-$3.32 versus the $3.62 estimate. The stock rallied 7.39% in extended trading.

The article recommends three consumer growth stocks for May 2026: Dutch Bros, which trades at a similar valuation to Starbucks but has more profitable individual stores and greater expansion potential; e.l.f. Beauty, which is expanding its Rhode skincare brand distribution; and MercadoLibre, which is investing in e-commerce and fintech opportunities in Latin America while trading at an attractive forward P/E ratio.

e.l.f. Beauty stock has fallen 27% this year due to macroeconomic headwinds including tariffs, inflation, and impacts from the Iran war affecting its oil-dependent production. Despite near-term challenges, the company continues gaining market share in cosmetics and skincare, recently acquired Rhode brand, and trades at 31x trailing earnings—well below its 5-year average of 75x. Analysts maintain positive outlooks with an average 12-18 month price target 58% higher than current levels.

Rakuten CEO Hiroshi Mikitani has aggressively reduced AST SpaceMobile holdings by approximately 32%, selling $271 million worth of shares in Q2 2026. While still holding over 21 million shares, Rakuten's position has fallen below the 10% threshold. Meanwhile, Marvell Technology sees increased insider selling amid strong stock performance, though most sales are pre-planned. e.l.f. Beauty insider sales appear procedural and non-concerning.

The article highlights three growth stocks worth long-term ownership despite market downturns: e.l.f. Beauty, known for 28 consecutive quarters of sales growth and strong value positioning; Vita Coco, which dominates the coconut water market with a diversified supply chain moat; and Dutch Bros, a coffee chain in early national expansion with proven brand culture and strong loyalty metrics.

Following a market pullback due to geopolitical tensions and rising oil prices, the article identifies three undervalued stocks as buying opportunities: Chewy, a defensive pet supplies company with strong growth; e.l.f. Beauty, a cosmetics company with significant growth potential through its Rhode brand acquisition; and Pinterest, a shopping discovery platform backed by activist investor Elliott Investment Management.

e.l.f. Beauty stock fell 34.2% in March due to the Iran war, which disrupted oil shipping and increased petrochemical costs for the cosmetics company, compounded by negative analyst coverage. The stock has recovered 5.3% in April following announcements of a ceasefire and reopening of the Strait of Hormuz.