Why did ELF stock drop after an earnings beat?

The stock rallied early, then reversed as investors assessed sustainability. Valuation is rich at about 60x earnings, and margin questions tied to tariffs and mix came into focus. When expectations run high, even strong results can trigger profit taking while the market waits for confirmation on margins and guidance.

Is ELF stock overvalued at current levels?

At $84 to $90 with a TTM P/E near 60, the stock prices in strong multi‑year growth. Bulls cite category share gains and high gross margin. Bears highlight operating margin near 10% and tariff risk. It is not cheap, so execution on margins and Rhode scale is critical.

How does the Rhode acquisition affect results?

Rhode delivered outsized growth and helped management raise guidance, with strong demand into international rollout. Investors will watch whether Rhode scales with healthy incremental margin and repeat rates. Clear visibility on supply, launch cadence, and attach rates with core e.l.f. products matters for sustaining momentum in ELF stock.

What technical levels matter for ELF stock now?

Key resistance sits near $90, with the upper Bollinger Band around $85 and RSI near 62. Support is around the 50‑day average near $81 and then $80. A close above $90 could invite momentum buying, while a break below $80 would risk a deeper retracement.

What near‑term catalysts should investors watch?

Focus on the Super Bowl campaign’s conversion to traffic and retail sell‑through, any tariff or cost updates that affect margins, and Rhode’s international rollout pace. Management commentary on pricing and mix will guide expectations. These factors should shape the next move in ELF stock more than headline revenue growth.

Global Market Insights

ELF Stock Today: February 5 Post‑Earnings Reversal Despite Guidance Hike

ByDanny Kontos February 5, 2026February 5, 2026

ELF stock slipped on February 5 despite a clean earnings beat and raised guidance from E.l.f. Beauty (ELF). The company posted Q3 EPS of $1.24 versus $0.72 and revenue of $490 million versus $460 million, with Rhode driving outsized growth. Investors questioned how long hypergrowth can last and what tariffs could do to margins. With a Super Bowl campaign and Rhode’s global rollout ahead, we expect higher volatility. Below, we outline the numbers, risks, technicals, and the setup for U.S. investors.