e.l.f.-2 Growth Stocks Wall Street Might Be Sleeping on, but I'm Not

Group 1: Market Overview - The market is recovering from lows and avoiding a full-on crash for the time being [1] - Investors are shifting focus from younger growth stocks to safer stocks, but some growth stocks remain undervalued [2] Group 2: Revolve Group - Revolve Group is a digital fashion disruptor utilizing AI for inventory management, website design, and marketing [3][4] - In Q4 2024, Revolve's revenue increased by 14% year over year, with net income rising by 237% and free cash flow turning positive at $1.8 million [5] - Active customers increased by 5%, total orders rose by 7%, while average order value decreased by 1% [7] - The company plans to expand its product assortment and open its first full-time physical store in Los Angeles [8] - Revolve's stock is down 42% this year, trading at a forward P/E ratio of 22 [9] Group 3: E.l.f. Beauty - E.l.f. is disrupting the cosmetics industry with a focus on affordable makeup and skincare, targeting young, value-driven consumers [10][11] - The company holds the top spot in color cosmetics unit share and 12% of the dollar share, with strong performance in various cosmetics categories [12] - In Q3 2025, sales increased by 31% year over year, but EPS fell from$ 0.46 to $0.30 due to rising expenses [13] - E.l.f. stock is down 54% in 2025, but there are opportunities for growth, especially among younger consumers [14] - The stock trades at a forward P/E ratio of 14, suggesting it may be undervalued despite potential turbulence ahead [15]