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e.l.f. Beauty, Inc. (NYSE:ELF) was among the stocks Jim Cramer discussed during Mad Money, as he highlighted a difficult backdrop for stocks. A caller asked whether the stock is a buy, sell, or hold in light of its most recent quarterly earnings. Cramer commented:

I think this is a very, very challenged group, okay? Not necessarily that ELF stands out. Almost every company in this cosmetics group is too challenged. I don’t want to touch it. Even though I think it’s a good company, when your milieu is troubled, you can’t buck it. Same thing by the way, if I were talking about liquor. Like you called me about Brown-Forman, I’d say, you know what, too tough a group.

Stock market data. Photo by Jakub Zerdzicki on Pexels

e.l.f. Beauty, Inc. (NYSE:ELF) sells cosmetics and skincare products under its brands, like e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare. During the May 29 episode, a caller asked whether they should buy more or just hold the stock, and Cramer replied:

I’m worried about it. I’m worried about it because you know, they get a lot of stuff from, you know, it’s made in China, and what really bothers me about it is the inexplicable decline and the very large short position. I am, call me confused about ELF. I don’t understand how the stock did indeed fall apart.

While we acknowledge the potential of ELF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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