Why e.l.f. Beauty, Inc. (ELF) Surged On Thursday

We recently published a list of While Wall Street Naps, These 10 Stocks Run Wild. In this article, we are going to take a look at where e.l.f. Beauty, Inc. (NYSE:ELF) stands against other best-performing stocks.

e.l.f. Beauty surged by 23.58 percent on Thursday to end at $111.84 apiece following news that it was acquiring makeup line Rhode, a company owned by Justin Bieber’s model wife, Hailey, for $1 billion.

In a statement, e.l.f. Beauty, Inc. (NYSE:ELF) said it officially inked a definitive agreement with Rhode for the said amount. The transaction includes an $800-million combination of cash and stock, and an additional $200 million based on the future growth of the brand over a three-year timeframe.

Why e.l.f. Beauty, Inc. (ELF) Surged On Thursday

A close up of the lip and eye products from the company on a model in a fashion and beauty shoot.

“[Rhode] further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible. We are excited by Rhode’s ability to break beauty barriers, fully aligning with e.l.f. Beauty’s vision to create a different kind of company,” said e.l.f. Beauty, Inc. (NYSE:ELF) Chairman and CEO Tarang Amin.

The brand has seen incredible growth, more than doubling its consumer base over the past year and driving a total of $212 million in net sales in the past 12 months ending March 31, 2025.

Overall, ELF ranks 1st on our list of best-performing stocks. While we acknowledge the potential of ELF, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ELF and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.