Jim Cramer’s Latest Stock Picks

7. e.l.f. Beauty, Inc. (NYSE:ELF)

Number of Hedge Fund Holders: 40

Cramer called e.l.f. Beauty, Inc.’s (NYSE:ELF) situation complicated but also guessed that it would return faster than others in the group. Here’s what he had to say:

“Well, remember, this is a very tough situation because all of cosmetics are in a downturn that is so staggering that it caught everybody by surprise, especially Fabrizio Freda at Estee Lauder. I think Estee Lauder is not as good as E.l.f, but I recognize that this group is in the doldrums. I don’t want to make a single call on a group decline. I do think that when they come back, this one will come back faster than all of them.”

e.l.f. Beauty (NYSE:ELF) is a big name in the cosmetics industry and provides a diverse range of cosmetic and skin care products offered under several brand names, including e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare. The company has recently reported significant growth, marking a strong beginning to the fiscal year.

Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer highlighted that the company achieved 50% net sales growth in the first quarter, along with an increase of 260 basis points in market share. The achievement signifies the 22nd consecutive quarter of growth in both sales and market share, positioning the company among a select group of high-growth consumer companies.

In the first quarter of fiscal year 2025, e.l.f. Beauty (NYSE:ELF) generated revenue of $324.5 million, a substantial 50% increase compared to the same period the previous year. Non-U.S. markets contributed significantly to this growth, accounting for 16% of total net sales, with net sales from these markets soaring by 91% year-over-year. The company’s updated outlook for fiscal 2025 expects a year-over-year increase in net sales of 25% to 27%, an upward revision from the earlier expectation of 20% to 22%.