10 Best Affordable Stocks Under $10 to Buy

7. Coty Inc. (NYSE:COTY)

Number of Hedge Fund Holders: 23

Share Price as of October 18, 2024: $7.82

Forward P/E as of October 18, 2024: 14.08

Coty Inc. (NYSE:COTY) is a beauty company based in New York, United States. The company sells beauty products across two major segments including Coty Luxury and Coty Consumer. It licenses luxury brands such as Gucci, Burberry, Hugo, Bourjois, and CoverGirl. The company sells fragrances, color cosmetics, skincare, and body care in more than 125 countries and territories.

On the innovation front, Coty Inc. (NYSE:COTY) has been making some progress. In September, the company launched its first scientific advisory board that would meet twice a year to inspire breakthroughs among R&D specialists at COTY, with a special focus on skincare. Fast forward to October 17, the company revealed its innovations at the 34th International Federation of Societies of Cosmetic Chemists Congress (IFSCC). The company revealed its study on the application of neuroscience in product development. The study is the backbone of its recent innovation, Paixão Feminino Ancestral. This is a special body care line with body lotion and oil that is focused on how sensory stimuli influence people’s moods.

Overall, Coty has sustained revenue growth across key markets growing by mid-single digits to double-digit rates. In the fiscal first quarter of 2025, the company grew its sales by 4-5%, below its estimated growth of 6%. Coty Inc. (NYSE:COTY) expects sales to moderate in the fiscal second quarter of 2025, with minimal growth acceleration, due to cautious retailers.

Despite slower activity in the retail industry, the company expects its cost-reduction initiatives to bring fruit. For fiscal year 2025, the company expects to see its EBITDA increase by 9-11% as it reaps the benefits from cost savings and continued growth in sales. In addition to that, Coty Inc. (NYSE:COTY) is trading at a discount of 23.4% from its sector median of 18 and analysts expect its earnings to grow by 48.6% this year.