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Here are the Several Tailwinds to Propel e.l.f. Beauty’s (ELF) Growth

ClearBridge Investments, an investment management company, released its “ClearBridge Multi Cap Growth Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the Strategy underperformed its benchmark, the Russell 3000 Growth Index. The Strategy posted gains across five of the seven sectors in which it was invested, on an absolute basis. Overall stock selection detracted from the performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.

ClearBridge Multi Cap Growth Strategy highlighted stocks like E.l.f. Beauty, Inc. (NYSE:ELF), in the first quarter 2024 investor letter. E.l.f. Beauty, Inc. (NYSE:ELF) provides cosmetic and skin care products. The one-month return of E.l.f. Beauty, Inc. (NYSE:ELF) was 13.60%, and its shares gained 88.82% of their value over the last 52 weeks. On June 25, 2024, E.l.f. Beauty, Inc. (NYSE:ELF) stock closed at $208.76 per share with a market capitalization of $11.678 billion.

ClearBridge Multi Cap Growth Strategy stated the following regarding E.l.f. Beauty, Inc. (NYSE:ELF) in its first quarter 2024 investor letter:

“In consumer sectors, we added Tractor Supply Company and E.l.f. Beauty, Inc. (NYSE:ELF). ELF, in the consumer staples sector, is the third-largest mass cosmetics brand in the U.S. We believe the flywheel of ELF’s consumer value proposition, its innovation pipeline, and its unique ability to bring prestige-like products to mass consumers and high consumer engagement will enable the company to continue to outgrow the global market. We see significant opportunity for ELF to transform itself from an emerging U.S. color cosmetics brand to a global beauty stalwart by doubling its share in the U.S. over the next few years and gaining share in international and skincare markets. ELF is profitable, balancing growth and earnings, and has an attractive balance sheet.”

A close up of the lip and eye products from the company on a model in a fashion and beauty shoot.

E.l.f. Beauty, Inc. (NYSE:ELF) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held E.l.f. Beauty, Inc. (NYSE:ELF) at the end of the first quarter which was 34 in the previous quarter. E.l.f. Beauty, Inc. (NYSE:ELF) achieved over $1 billion in net sales in the year, experiencing a 77% growth in fiscal ’24. In the fiscal Q4 2024, ELF achieved a 71% increase in net sales, raised gross margin by around 180 basis points, and grew adjusted EBITDA by 93%. While we acknowledge the potential of E.l.f. Beauty, Inc. (NYSE:ELF) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We discussed E.l.f. Beauty, Inc. (NYSE:ELF) in another article and shared Artisan Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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