10 Best Beauty Stocks To Buy According to Short Sellers

1.  Unilever PLC (NYSE:UL)

% of shares shorted: 0.08%

One of the “Biggest Cosmetics Brands in the World,” Unilever PLC (NYSE:UL), is a firm that focuses on personal care (52% of total revenues in 2022), homecare (14%), and packaged food (34%). Axe and Dove, Sunsilk, Clear, and Vaseline, as well as the TRESemmé, are among its beauty brands.

The UK-based congolomerate has made several noteworthy acquisitions recently, including Horlicks, Paula’s Choice, Liquid I.V., Garancia, and The Vegetarian Butcher.

One of the key beauty players in the world, Unilever PLC (NYSE:UL), generates revenues in the tens of billions of dollars annually. Although it is a defensive stock for consumers, it also enjoys the benefit of substantial funding that enables it to explore innovative beauty solutions.

The Beauty & Wellbeing segment’s underlying sales surged by 7.4% YoY in Q1 2024. The segment’s volume climbed by 5.6% YoY, primarily due to double-digit growth in Prestige Beauty and Health & Wellbeing. Despite a particularly strong prior year comparative, Personal Care gained 4.8% YoY, with volume increasing 1.4% YoY.

Bank of America’s double upgrade of UL to “Buy” points to the conglomerate’s outstanding growth prospects, which include an estimated 4.6% organic CAGR from 2024-2027 and a 10% EPS CAGR from 2023-2026. Unilever’s market positioning is further strengthened by its strategy emphasis on “power brands” and innovation, as well as by the anticipated separation of its Ice Cream division by 2025, which is expected to increase concentration on higher-growth categories. There is a predicted 19% upside potential with a revised price objective of 5,600p, suggesting that the current turnaround is gaining momentum.

UL has hedge fund sentiments of 21 in Q2 2024. Ken Fisher’s Fisher Asset Management is the largest shareholder in the firm, with 15,612,223 shares worth $858.52 million.

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