10 Best Household and Personal Care Stocks to Buy

2. Kenvue Inc. (NYSE:KVUE)

Number of Hedge Fund Investors: 58

Personal care and housekeeping products are sold by Kenvue Inc. (NYSE:KVUE). It is the world’s largest pure-play consumer health company by revenue, with $15 billion in annual revenue.  This consumer health company focuses on a broad range of personal care and household products, such as skincare, haircare, over-the-counter medications, and infant care items. Kenvue, a Johnson & Johnson spin-off, is a major force in the household and personal care industry, managing well-known brands like Band-Aid, Neutrogena, Tylenol, and Listerine.

The firm has shown strong brand performance over the years, with increased sales of well-known products such as Listerine, Tylenol, Zyrtec, and Benadryl.

Following its separation from parent company Johnson & Johnson (JNJ) last year, some investors may still have doubts about what Kenvue (NYSE:KVUE) can become in the far future. However, the company recently released its Q2 2024 results and is steadily making progress toward becoming a fantastic, long-term stock for dividend investors.

However, revenue decreased just by 0.27% YoY. This was also linked to the slow onset of allergy season. Despite dipped sales, the segment was nevertheless able to increase its share, which is a credit to its range of items.

Kenvue’s branded products are preferred over less expensive generic alternatives, even by consumers with limited budgets. This brand loyalty and product quality create a steady revenue base, particularly in the Self Care and Essential Health areas.

Oakmark Fund stated the following regarding Kenvue Inc. (NYSE:KVUE) in its first quarter 2024 investor letter:

“Kenvue Inc. (NYSE:KVUE) became the largest standalone consumer health company following its split-off from Johnson & Johnson in May 2023. The company’s highly recognizable brands, such as Neutrogena, Listerine, Tylenol and Band-Aid, have been market share leaders in their respective categories for generations. However, Kenvue’s first year as a public company was clouded by litigation and market share losses in certain categories. As a result, Kenvue now trades for just 16.5x trailing earnings, a substantial discount to the market and other consumer health and packaged goods companies. We see an opportunity for the company to improve efficiency and re-invest the cost savings into increased product development and marketing, which should help improve its growth and brand equity.”

Although the personal care and housekeeping products company’s Skin Health & Beauty division is facing short-term challenges, the company’s innovation-driven strategy, such as utilizing social media influencers and expanding into important markets like Europe, could support development in the medium to long run.

Natixis Global Asset Management’s Harris Associates is the largest shareholder in the company, with 29,273,397 shares worth $532.19 million.