ELF Beauty (ELF) has emerged as a top stock to watch as it gears up for its upcoming earnings report. The company, known for its cosmetics and skin care products, has seen a solid rally in its stock price since reporting earnings in November. In January alone, ELF stock gained more than 10%, signaling positive momentum for the company.

Based in Oakland, California, ELF Beauty focuses on offering quality products at affordable prices, with its cosmetics and skin care items available through major retailers such as Target, Ulta Beauty, and various e-commerce platforms. The company’s stock currently holds the top position out of 41 stocks in the IBD cosmetics/personal care group, boasting a strong Composite Rating.

ELF stock recently made significant moves, surpassing a three-weeks-tight add-on entry and bouncing back from support at its 10-week line. With a breakout from a cup-base buy point in December, the stock is now trading comfortably above its 10-day, 21-day, and 50-day moving averages. Additionally, the relative strength line for ELF stock is showing signs of nearing highs, indicating underlying strength in the stock.

Looking ahead, ELF is scheduled to report its fiscal third-quarter results on February 6, with analysts anticipating a 16.6% year-over-year increase in profit to 56 cents per share and a 62% rise in revenue to $238.4 million. The upcoming earnings release follows a series of robust reports, including triple-digit earnings growth in the previous quarter, accompanied by a surge in digital and international revenue.

ELF Beauty’s positive performance has not gone unnoticed, with its stock initially soaring 15% intraday after the last earnings release, followed by a subsequent rally of more than 27% in November and an additional 22% in December. With such strong momentum leading up to its upcoming earnings report, ELF Beauty continues to capture the attention of investors and analysts alike.