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Can E.L.F. (ELF) Stock Rebound in 2026?


E.l.f. Beauty (NYSE: ELF) has become one of the most important cosmetics companies in the world, stealing market share from the traditional leaders over the past few years. However, despite the company's success, the stock has been disappointing for investors over the past year, down 42%. Can it rebound next year?

Image source: Getty Images.

It's not an easy time for any cosmetics company. Inflation is still high, affecting discretionary purchases, and new tariffs are affecting companies that rely on an international manufacturing process, especially if goods come from China. Since 75% of E.l.f.'s products are made in China, this is a big issue. So while top-line growth is slowing down due to consumer pullback, the bottom line is declining as costs increase. That's not a great growth recipe.

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Source Fool.com

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