8-Day Sell-Off Sends e.l.f. Beauty Stock Down -42%

e.l.f. Beauty (ELF) stock hit day 8 of a continuous streak of days with losses, with cumulative losses over this period amounting to a -42% return. The company has lost about $3.0 Bil in value over the last 8 days, with its current market capitalization at about $4.2 Bil. The stock remains 41.3% below its value at the end of 2024. This compares with year-to-date returns of 14.4% for the S&P 500.

e.l.f. Beauty’s recent streak saw shares plummet after Q2 revenue of $344M missed targets, overshadowed by a weaker FY26 profit outlook. Escalating tariffs, projected to cut adjusted EPS by ~17% to $2.80-$2.85, compressed margins and slowed core brand growth, triggering analyst downgrades despite strength in the Rhode acquisition. For quick background: ELF provides cosmetic and skin care products through national and international retailers, direct-to-consumer channels, and e-commerce platforms in the U.S. and distributors internationally.

What is the point? Sustained weakness can be more than noise. It often signals shifting sentiment or deeper concerns. A multi-day losing streak may warn of further downside, or present an opportunity to buy if fundamentals are intact. Our take: There is not much to fear in ELF stock given its overall Strong operating performance and financial condition. This is aligned with the stock’s High valuation because of which we think it is Fairly Priced. Deep dive with Buy or Sell ELF.

If you seek an upside with less volatility than a single stock, consider the High Quality Portfolio (HQ) – HQ has outperformed its benchmark – a combination of S&P 500, Russell, and S&P midcap index, and achieved returns exceeding 105% since its inception.

Comparing ELF Stock Returns With The S&P 500

The following table summarizes the return for ELF stock vs. the S&P 500 index over different periods, including the current streak:
 

 
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: ELF Dip Buyer Analysis.

Gains and Losses Streaks: S&P 500 Constituents

There are currently 72 S&P constituents with 3 days or more of consecutive gains and 23 constituents with 3 days or more of consecutive losses.
 

 
 
Key Financials for e.l.f. Beauty (ELF)

Last 2 Fiscal Years:

Last 2 Fiscal Quarters:

 
The losing streak ELF stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.