Beauty products outperform AI? This company's five-year growth far surpasses NVIDIA.
ELF Beauty offers affordable beauty products for Generation Z and Millennials. Over the past five years, its stock price has risen by 2639%, while NVIDIA's stock price has increased by 1937%.
Artificial intelligence has been dominating the scene, with only a few stocks outperforming NVIDIA at the moment. However, looking ahead five years, it is surprising to see that the "AI King" has been easily surpassed by a cosmetics manufacturer.
This cosmetics manufacturer is called ELF Beauty, which owns affordable skincare and makeup brands such as ELF, Well People, and Keys Soulcare. With the gimmick of "high-end replacement at an affordable price," they have gained a large number of loyal customers from Generation Z and Millennials.
Supported by strong demand in the beauty industry, analysis from Bespoke Investment Group shows that ELF Beauty's stock price has risen by 2639% in the past five years, compared to NVIDIA's 1937% increase.
NVIDIA and ELF Beauty operate in vastly different industries, one being a chip manufacturer for AI and the other a cosmetics company. However, they share a common trait - both have achieved a streak of strong performances, surpassing expectations for multiple quarters with a very promising future outlook.
Bespoke points out that NVIDIA has achieved a "five-peat," while ELF Beauty has achieved a "seven-peat" since August 2022.
In February, ELF Beauty further raised its annual performance guidance, with profits significantly exceeding analysts' expectations and sales soaring by 85%.
Moreover, ELF Beauty's market share has more than doubled in the past two years. The #eyeslipsfaceTikTok challenge in 2019 became one of the most explosive advertisements in TikTok's history.