10 Best Hair Care Stocks To Buy Now

4. Estée Lauder Companies Inc. (NYSE:EL) 

Number of Hedge Fund Investors: 47

Estée Lauder Companies Inc. (NYSE:EL), a market leader in the luxury beauty industry globally, provides best-selling brands such as Aveda, Bobbi Brown, Clinique, M.A.C., La Mer, Jo Malone London, and Origins.

The company is involved in the following categories: makeup (29%), skin care (51% of Q2 2024 sales), fragrance (16%), and hair care (4%). The Ordinary, Aveda, and Bumble and Bumble are its haircare brands.

The beauty behemoth’s revenue is split as follows, despite having operations in over 150 countries: 30% are from the Americas, 39% from Europe, the Middle East, and Africa (including retail travel), and 31% from Asia-Pacific.

Leading provider of luxury cosmetics, skincare, and perfumes, Estée Lauder Companies Inc. (NYSE:EL) has reinforced its competitive position against industry leaders and kept its standing as a preferred seller on physical and digital channels. These qualities should guarantee a long-term competitive advantage that enables the company to produce excess returns for more than 20 years, in addition to scale-based cost advantages.

Despite seeing mixed outcomes at the end of the 2024 fiscal year, the beauty giant’s adjusted earnings and revenue exceeded projections. The company suffered diminishing demand in China and North America amid a surge in sales of skincare products, and CEO Fabrizio Freda announced his resignation at the end of the fiscal year 2025.

Aveda in North America was the main cause of the 4% fall in Hair Care net sales in 2024 FY, which was a reflection of softness in the salon channel and the company’s direct-to-consumer distribution channels. Operating results for the hair care industry fell, mostly due to a drop in net sales, which was somewhat mitigated by strict cost control.

D.A. Davidson analyst Linda Bolton Weiser maintained a Buy rating on Estée Lauder with a $130 price target despite the recent declines in Chinese and travel retail sales. She noted a possible rebound from inventory worries as well as favorable long-term prospects.

The company has hedge fund sentiments of 47 in Q2 2024. Ken Griffin’s Citadel Investment Group is the largest shareholder in the company, with 3,037,570 shares worth $323.20 million.