3 Stocks That Are Causing a Stampede Among Investors | Markets

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Momentum is a powerful force in the stock market. Once a stock becomes popular, its ascent can defy logic and lead to a stretched valuation. While some popular stocks crash within a few months, others live up to the hype.

A swift recovery in 2023 has carried into 2024, with the S&P 500 and Nasdaq 100 both up year-to-date. Some investors look for opportunities to outperform the established benchmarks. While following the crowds isn’t always the best approach, strong fundamentals can justify a stampede among investors. These top stocks are generating plenty of attention.

E.l.f. Beauty (ELF)

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E.l.f. Beauty (NYSE:ELF) is a beauty brand rapidly gaining market share and continues to reward long-term investors. The stock is up by roughly 1,800% over the past five years and is already off to a strong start with a 35% year-to-date gain. Shares trade at an 87 P/E ratio and are in the middle of a healthy correction.

High growth rates for revenue and earnings have propelled the stock over the years. The firm reported its 20th consecutive quarter of sales growth in the third quarter of fiscal 2024. It wasn’t a small growth rate either. Net sales were 85% higher in Q3 FY24 year-over-year (YoY).

Net income also got a strong boost and was up by 41% YoY. E.l.f. Beauty used some of those proceeds to acquire Naturism, a fast-growing, high-performance skin brand. The company funded the acquisition with cash and company stock.

The cosmetics company raised its fiscal 2024 outlook across the board. Net sales are expected to reach $980 to $990 million compared to $896 to $906 million in the previous fiscal 2024 outlook. The previous guidance also projected diluted EPS to range from $2.47 to $2.50, while it now ranges from $2.84…

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