Finance

IBD Daily Stocks Trigger Rule Sell; Ulta Comments Drag Beauty Stocks


Elf beauty

Elf beauty

Very low frequency


$19.69



10.59%



239%

IBD Stock Analysis

  • A hard break above the 10-week moving average flashes a sell signal.

Overall rating

Industry group ranking

emerging models

break down

*Non-real-time data. All information displayed was captured as of April 3, 2024 at 1:39 pm ET.

ELF beauty is Daily IBD Stock Wednesday, but that’s not because the stock is a buy. Elf stock is issuing a sell signal as it breaks below a key support level.




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Ulta Reviews Spark Cosmetics Drop

Beauty and cosmetics stocks plunge on Wednesday on cautious comments ultimate beauty (ULTA) executives at J.P. Morgan Chase’s annual retail investor conference.

According to The Fly, Ulta CEO Dave Kimball and CFO Paula Oyibo said the company is growing “a little slower” than expected this year and expects First-half comparable sales growth will be at the “lower end” of its guidance.

“We had planned to slow total category growth to the mid-single-digit range,” Oyigbo said. “So far, what we’ve seen is a slowdown in total category growth across price points and segments. So it’s a little bit bigger than we thought. It’s earlier and bigger.”

Ulta has previously directed Comparable sales growth in 2024 is between 4% and 5%, with low single digits in the first half and mid-single digits in the second half.

The company now expects first-quarter comparable sales to be at the lower end of the low-single-digit range provided in its first-half guidance.

CEO Kimball said consumers remain “passionate about beauty,” but noted rising economic pressures.

“The engagement we’re seeing on social media, in stores and online and all the touch points we have is still very high,” Kimball said of the data points. “

Kimball pointed to healthy employment and wage growth, but added that rising credit card debt and student loan dynamics are adding to the pressure. More broadly, he said, there are political challenges and global conflicts during an election year.

ULTA shares fell 15.3% on Wednesday following the remarks. Beauty stocks overall were somewhat affected. Estee Lauder (EL) fell 4.2%, while Coty (Coty) fell 6.3%.

Elf Beauty Stock

ELF shares plunged 11.9% on Wednesday, significantly lower than its share price 50-day moving average and 10-week line. If volume falls strongly below either line, it indicates sell signal.

Trading volume surged to over 272% of daily average levels on Wednesday. market surge Data Display.

The company’s stock price rose nearly 151% from a low on October 31 to an all-time high of $221.83 on March 4. Beats third-quarter expectations and raises outlookHowever, Elf’s earnings growth has slowed from triple-digit growth over the past three quarters.

Investors who bought at 139.85 saw shares rise nearly 59% to the March 4 peak. Before issuing a sell signal on Wednesday, the stock had pared gains to about 33% by Tuesday’s close.

Elf beauty has 95 Overall rating The maximum score is 99 points. The composite rating combines various technical indicators into an easy-to-read score. The stock has a score of 98 EPS Rating.ELF relative strength line It has fallen back from its highs in early March, with the index at 96 RS rating.

Elf Beauty leads the cosmetics/personal care group according to survey IBD inventory check.

Despite Wednesday’s decline, ELF shares are still up 13.5% in 2024.

You can follow Harrison Miller on X/Twitter for more stock news and updates @IBD_Harrison

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