Jim Cramer Answers If the Market Has Bottomed and Weighs In On 11 Stocks

8. e.l.f. Beauty, Inc. (NYSE:ELF)

Number of Hedge Fund Holders: 35

A caller asked whether it was time to rebuild a position in e.l.f. Beauty, Inc. (NYSE:ELF) after its recent decline. Cramer acknowledged the brand’s pricing power and leadership but expressed concern about its China exposure and the uncertainty surrounding potential tariffs. Here’s what he said:

“I’m so glad you asked me about this. This is at the fulcrum of what I’ve been working on. Elf has a connection to China, obviously that’s where they make their stuff, that’s why they’ve been able to undercut everybody else in price. Now all we know is that it’s up in the air of what’s going to happen with Elf. We don’t know what kind of tariff it’s going to pay. If we don’t know what kind of tariff it’s going to pay then I can’t spend $53 for that stock! It’s just not right. […] And that’s why I’m staying away from Elf, even as I think that everyone knows I think Tarang is a terrific CEO. It doesn’t matter; it’s out of his hands.”

In March, Jim Cramer advised his viewers to stay away from cosmetic stocks and used e.l.f. Beauty, Inc. (NYSE:ELF) as an example, saying:

“And plus I mean, it’s just been a relentless, you know, Elf has been terrible. . . .This is a very challenged group and you got to be careful about cosmetics. . . But I want to stay away from cosmetics nine ways to Sunday. Anything cosmetics is just no place to be.”