ELF

The article compares Dutch Bros and e.l.f. Beauty as investment options in 2026. Dutch Bros, a rapidly expanding drive-thru coffee chain with over 1,225 locations, reported 27.9% revenue growth and improved profitability. e.l.f. Beauty, a digital-first cosmetics company, achieved 24.6% revenue growth with 30 consecutive quarters of sales growth but faces margin pressure from rising costs. The author recommends Dutch Bros for its traffic-driven growth and long runway of new locations, despite e.l.f. Beauty's impressive growth trajectory.

e.l.f. Beauty has gained 17.7% over the past month, outperforming the S&P 500. The company shows strong fundamentals with a Zacks Rank #1 (Strong Buy) rating, driven by positive earnings estimate revisions.

Current fiscal year earnings are expected to grow 16.6% year-over-year, with revenue growth of 20.3%. However, the stock is trading at a premium valuation (F grade) compared to peers.

e.l.f. Beauty stock declined 1.62% to $108.16, underperforming the S&P 500's 0.02% loss. Despite a 13.62% gain over the past month, the company faces a predicted 13.24% EPS decline for the upcoming quarter, though revenue is expected to grow 36.42% year-over-year. The stock maintains a Zacks Rank #1 (Strong Buy) rating but trades at a premium valuation with a Forward P/E of 30.11 versus the industry average of 25.3.