Out Fox The $treet

A prime example of investors getting too negative on a stock is  e.l.f Beauty (ELF) . The affordable cosmetics stock leading the selfie generation plunged from a high above $30 at the end of 2016 following a successful IPO to end up below $7 early this year. The market got far too negative when the market cap dipped to only $350 million.  The reliable P/S multiple kicked into full gear with e.l.f having a revenue target of $250 million. The stock has now doubled and JPMorgan turned bullish on the stock today.  Now probably isn't the time to chase the stock, but ELF provides a great example of investors leaving a big gain on the table with the double off the lows. When the P/S multiple has a 1x figure, any stock outside of a company at risk for bankruptcy gets appealing.  More commentary on WhoTrades Disclosure: No position. Please read the  disclaimer  page for more details. 

While reviewing Ulta Beauty (NASDAQ: ULTA ) , the constant realization is that the company has no comparable competition. The beauty sector is a massive industry yet the majority of the products are sold via direct marketers, department stores, or drug stores. Neither group offers a focused, easy to visit store format. For a consumer that wants quality products, they previously had to travel to a distant mall. Enter Ulta Beauty into more » Disclosure: No positions mentioned. Please read the full disclaimer page for more details.