Earlier in 2024, e.l.f. Beauty (NYSE: ELF) hit a 1,000% return over the last five years and an all-time high. It has since fallen 29%. After it reported its latest quarterly earnings, investors decided to sell off the stock due to disappointing forward revenue guidance. There has been no help from the broad market either, with growth stocks in a downtrend this summer.

Taking a longer view, e.l.f. Beauty has grown its sales like gangbusters in the last few years and is one of the only large brands in the beauty sector to gain spending share, stealing customers from legacy players. With the stock down from all-time highs, is e.l.f. Beauty a buy or sell today? Here's my prediction for what comes next.

Fiscal 2025's first quarter (ended June 30) showed more of the same for e.l.f. Beauty: fantastic revenue growth across the board. Overall revenue grew 50% year over year to $324.5 million, with international markets growing 91%. The brand has gained a ton of market share in North America and is now repeating its same low-price high-quality marketing in Europe and other countries. E.l.f. Beauty is the No. 4 brand in the U.K., for reference.

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Source Fool.com