HELE vs. ELF: Which Stock Should Value Investors Buy Now?

Group 1 - The article compares two companies in the Cosmetics sector: Helen of Troy (HELE) and e.l.f. Beauty (ELF), focusing on which stock may be undervalued [1] - The Zacks Rank system is highlighted as a method to identify value opportunities, emphasizing the importance of positive earnings estimate revisions [2][3] - HELE has a Zacks Rank of 2 (Buy), indicating an improving earnings outlook, while ELF has a Zacks Rank of 5 (Strong Sell) [3][7] Group 2 - Value investors utilize various metrics to assess undervaluation, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - HELE's forward P/E ratio is 6.68, significantly lower than ELF's forward P/E of 19.10, suggesting HELE may be more undervalued [5] - HELE's PEG ratio is 1.34, while ELF's PEG ratio is 4.18, indicating HELE's expected earnings growth is more favorable [5] - HELE has a P/B ratio of 0.73 compared to ELF's P/B of 4.68, further supporting HELE's stronger valuation metrics [6] - Overall, HELE is assessed to be the superior value option based on its improving earnings outlook and favorable valuation metrics [7]