7 Best Vegan Stocks to Buy According to Hedge Funds

2. E.l.f. Beauty, Inc. (NYSE:ELF)

Number of Hedge Fund Holders: 40

Oakland, California-based e.l.f. Beauty, Inc. (NYSE:ELF) offers high-quality, cruelty-free, and vegan makeup through its portfolio of five brands: e.l.f. Cosmetics, e.l.f. SKIN, Naturium, Well People, and Keys Soulcare. The company uses only animal-free ingredients in all its products.

On October 21, Piper Sandler reiterated its positive outlook on e.l.f. Beauty, Inc. (NYSE:ELF), keeping an Overweight rating and a $162 price target. The firm’s analysis pointed to strong growth potential for the cosmetics company, especially through digital and international expansion. While scanner data shows a slowdown, with sales up 8.5% year-over-year for the four weeks ending October 6—down from 26.3% in the first fiscal quarter—Piper Sandler remains confident, with the firm believing that e.l.f. Beauty, Inc. (NYSE:ELF) is well-positioned to meet or even exceed the upper end of management’s fiscal year targets.

In Q1 2025, the company outperformed expectations, reporting earnings per share of $0.87, above the forecasted $0.67, and revenue of $324.48 million, surpassing analysts’ predictions. This success was driven by strong demand and the launch of popular products like the Power Grip line. For fiscal 2024, the company reported over $1 billion in net sales, a 77% year-over-year increase, with international sales up 115%. Additionally, e.l.f. Beauty, Inc. (NYSE:ELF) achieved a 30% growth in its color cosmetics segment.

Shelton Sustainable Equity Fund stated the following regarding E.l.f. Beauty, Inc. (NYSE:ELF) in its Q2 2024 investor letter:

E.l.f. Beauty, Inc. (NYSE:ELF) operates as a cosmetic company. The company offers beauty products such as eyeliners, lipsticks, creams, brushes, powder, and skin care products for eyes, lips, face, and paw. e.l.f. Beauty is the first beauty company that is Fair Trade Certified, the first mass brand to be 100% vegan and cruelty free, and fits our PRIME criteria, primarily the impact and principles portion of our thesis, as e.l.f.‘s low cost and high quality provides access to makeup and skincare for every customer.”