In this article, we will discuss: 10 Best Household and Personal Care Stocks to Buy.
According to Grand View Research, the global market for beauty and personal care products is projected to increase at a CAGR of 7.7% from 2024 to 2030. The market was valued at $557.24 billion in 2023. Growing customer awareness of appearance is one of the main forces propelling market progress. In terms of type, in 2023 the conventional beauty and personal care market held the highest revenue share of 84.6%. Last year, the skincare segment brought in 33.7% of the total revenue from the beauty and personal care products market, while the market for haircare products is anticipated to expand between 2024 and 2030 at a CAGR of more than 8.1%. Regionally, the Asia Pacific beauty and personal care products market dominated the global market in 2023, accounting for 39.3% of total revenue, and is predicted to rise at a CAGR of approximately 9% from 2024 to 2030 as per the research.
Specifically, the market for personal care products in the United States was estimated to be around $73.17 billion in 2023 and is anticipated to grow at a CAGR of 6.1% between 2024 and 2030. The primary driver of the personal care products market’s expansion in the United States is the country’s aging population. The number of Americans 65 and older increased from 49.2 million in 2016 to 57.8 million in 2022, according to the US Census Bureau. In 2022, they made up 17.3% of the entire population. These individuals are primarily interested in healthcare products that help them retain a youthful appearance.
The purpose of regulations in the market for beauty and personal care goods is to guarantee product efficacy and consumer safety. Government organizations that regulate the industry, such as the European Commission in the European Union and the Food and Drug Administration (FDA) in the United States, set standards for product ingredients, labeling, and advertising.
On the other hand, Expert Market Research estimates that the global market for household care was valued at $106.40 billion in 2023. In order to reach a value of approximately $148.01 billion by 2032, the market is anticipated to grow at a CAGR of 3.7% during the forecast period of 2024-2032, according to the research. The market is being driven by a growing focus on cleanliness and health care, a growing popularity of washing machines, and the rising demand for household care goods like laundry detergents. In addition, the market’s primary regions include Europe, Asia Pacific, North America, Latin America, the Middle East, and Africa.
According to Deloitte’s 2024 consumer products industry outlook, as growing prices hit their limit in an unstable economy, the consumer products industry is predicted to shift from price-taking strategies to concentrating on “profitable volume” in 2024. Businesses that have performed well recently have demonstrated increased revenue and improved return on assets (ROA) by striking a balance between pricing power, innovation, and supply chain efficiency. The profitable expansion will depend on increasing volume while improving the product mix and holding onto as much pricing power as is practical, as additional price increases will encounter resistance from both retailers and cost-conscious consumers.
Advantageous mergers and acquisitions, strategic innovation, targeted advertising, and precision revenue growth management will be important strategies. Improved supply chain management and operational effectiveness are also essential. The consumer product executives Deloitte surveyed are cautious about maintaining volume and margin expansion in a difficult geopolitical climate, even with a positive outlook. It will be up to leaders to manage new and developing rules like the Corporate Sustainability Reporting Directive, GLP-1 weight-loss drugs, and generative AI.
With that said, here are the 10 Best Household and Personal Care Stocks to Buy.
A supermarket aisle filled with Household and Personal Care Products.
Methodology:
We sifted through holdings of household and personal care ETFs and online rankings to form an initial list of 20 household and personal care stocks. Then we selected the 10 stocks that were the most popular among institutional investors. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2024. We have used the stock’s market cap as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here)
10. Helen of Troy Limited (NASDAQ:HELE)
Number of Hedge Fund Investors: 21
Market capitalization as of September 12: $1.24 billion
Helen of Troy Limited (NASDAQ:HELE) is a consumer products firm with a diverse portfolio of brands that it uses to provide its clients with innovative products and solutions. Its operations are divided into two segments: the Home & Outdoor segment offers a wide range of consumer goods for tasks around the house like organizing, cooking, cleaning, and food preparation; it also offers goods for outdoor and mobile activities like hydration, food storage, backpacks, and travel gear. The Beauty & Wellness segment offers products for beauty and wellness like prestige and mass-market beauty appliances, prestige market liquid-based hair, and personal care products.
Consumer goods are offered by the company across the U.S., Europe, the Middle East, Africa, Asia Pacific, and Latin America.
Susan Anderson, an analyst at Canaccord Genuity, kept Helen of Troy Limited (NASDAQ:HELE) at a Buy rating with a price objective of $84. Its Project Pegasus, which intends to save $75 million to $85 million annually while improving operating efficiency and profitability by FY26, is the main driver of Anderson’s optimistic forecast. In the competitive market, Helen of Troy’s pledge to reinvest these savings in innovation and brand development is essential. Furthermore, the firm’s potential asset sales, capital allocation plan, and robust free cash flow offer flexibility for upcoming mergers and acquisitions, reinvestment, and share repurchases. These elements uphold Anderson’s Buy rating despite the present problems with consumer spending.
The Helen of Troy’s emphasis on cutting expenses and positive free cash flow production points to a strong possibility for future stock price growth.
Ken Fisher’s Fisher Asset Management is the largest shareholder in the firm, with 416,973 shares worth $38,67 million.
9. Unilever PLC (NYSE:UL)
Number of Hedge Fund Investors: 21
Market capitalization as of September 12: $161.06 billion
Among the many household and personal care brands owned by Unilever PLC (NYSE:UL), one of the “Biggest Cosmetics Brands in the World, are the well-known names Dove, Vaseline, and Magnum Ice Cream found in supermarkets and pharmacies. The company intends to spin off its ice cream business, which includes Ben & Jerry’s and Magnum, by the end of 2025.
Compared to its rivals, Unilever is often more active when it comes to acquiring and selling companies businesses. The firm bought Seventh Generation, a line of eco-friendly cleaning goods, and the direct-to-consumer Dollar Shave Club in 2016. In 2022, it sold off its global tea business, which included Lipton , and is currently targeting acquisitions in the plant-based foods industry. Other recent noteworthy acquisitions include Horlicks, Paula’s Choice, Liquid I.V., Garancia, and The Vegetarian Butcher.
Tens of billions of dollars are made by Unilever PLC (NYSE:UL), one of the major global companies in the cosmetics industry. Despite being a defensive stock for customers, it also benefits from significant funding that allows it to investigate cutting-edge cosmetic solutions.
In Q1 2024, the underlying sales of the Beauty & Wellbeing division increased by 7.4% YoY. The segment’s volume grew 5.6% YoY, mostly as a result of Prestige Beauty and Health & Wellbeing experiencing double-digit growth. Despite a particularly strong prior year comparison, Personal Care growth was 4.8% YoY, with volume up 1.4% YoY.
Unilever and Accenture have extended their strategic alliance in an effort to streamline UL’s digital core and use generative AI to increase productivity and business agility.
The firm’s exceptional development prospects, which include an expected 4.6% organic CAGR from 2024-2027 and a 10% EPS CAGR from 2023-2026, are highlighted by Bank of America’s twofold upgrading of UL to “Buy.” The focus that it places on innovation and “power brands” in its strategy, along with the expectation that its Ice Cream division will be separated by 2025, will improve the company’s focus on higher-growth categories, all of which serve to reinforce its market positioning. With a revised price target of 5,600p, there is a predicted 19% upside potential, suggesting that the current turnaround is gathering steam.
Ken Fisher’s Fisher Asset Management is the largest shareholder in the firm, with 15,612,223 shares worth $858.52 million.
8. Newell Brands Inc. (NASDAQ:NWL)
Number of Hedge Fund Investors: 24
American multinational consumer goods firm Newell Brands Inc. (NASDAQ:NWL) operations are organized into three segments: Outdoor and Recreation, Learning and Development, and Home and Commercial Solutions.
The Commercial Solutions segment offers products under the following brands: Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex; closet and garage organization; hygiene systems and material handling solutions; small appliances under the Breville brand in Europe; Kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; vacuum sealing products; gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The company also offers personal care products for babies.
Although Q2 revenue from Newell Brands was somewhat less than the $2.05 billion consensus, the company nevertheless managed to increase operating profits and gross margins significantly. Despite a difficult macroeconomic climate, the company’s Chief Financial Officer cited effective strategic execution, higher advertising spending, and decreased leverage as factors that contributed to a more positive financial picture.
Wells Fargo maintained an Equal Weight rating on the shares of the firm and increased the firm’s price objective from $6 to $9. The company reports that after more cautionary data points, a positional unwind was sparked by improved overall results and a minor profit increase, which caused shares to jump by over 40.5%, leading to a raised full-year outlook for 2024.
Overall, the Newell Brands Inc. (NASDAQ:NWL)’s emphasis on its top-performing brands, operational effectiveness, and strategies for improving margins are producing encouraging outcomes going forward.
Richard S. Pzena’s Pzena Investment Management is the largest shareholder in the company, with 52,479,058 shares worth $336.39 million.
7. Spectrum Brands Holdings, Inc. (NYSE:SPB)
Number of Hedge Fund Investors: 30
Spectrum Brands Holdings, Inc. (NYSE:SPB) manufactures and distributes consumer products and home essentials. The company is divided into three segments: Home and Garden (H&G), Global Pet Care (GPC), and Home and Personal Care (HPC). The home and garden, cleaning supplies, and insect control industries are all included in the H&G section. The market for small kitchen and personal hygiene appliances is included in the HPC segment.
The Home and Personal Care segment offers home appliances under the names Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman, as well as personal care goods under the Remington brand.
It manufactures, sells, and ships its products to Europe, the Middle East, Africa, Latin America, and North America.
The company reported revenue of $779.4 million for the third quarter of 2024, which was 6% YoY higher than the consensus estimate of $755.33 million. CEO David Maura reports that favorable year-to-date net sales growth is the result of strong operating momentum across all divisions. From the prior year, the gross margin climbed by 310 basis points to 38.9%. Adjusted EBITDA, which excludes investment income, was $93.6 million following a $23 million investment in brand and innovation. Net income rose to $191.3 million YoY. After deducting investment income, adjusted EBITDA margins came in at 12.0%, while net income margins increased by 2.5% annually. The company now forecasts adjusted EBITDA growth of about 20% for the whole year.
Brian McNamara of Canaccord Genuity boosted the price target to $91, although he maintained his Hold rating on Spectrum Brands. Despite strong Q3 sales and e-commerce growth, the Hold rating was given because of concerns about diminishing margins and the need for ongoing sales growth. Although the firm’s revised adjusted EBITDA estimate is encouraging, the analyst still sees issues with future profitability.
Spectrum Brands Holdings, Inc. (NYSE:SPB) is nevertheless in good financial standing and is one of the most prominent players in the household and personal care market.
6. Church & Dwight Co., Inc. (NYSE:CHD)
Number of Hedge Fund Investors: 36
Church & Dwight Co., Inc. (NYSE:CHD) is the biggest producer of baking soda in the world. In addition to baking soda, its product line consists of items like Batiste, OxiClean, Vitafusion, WaterPik, Hero, and TheraBreath that are appealing to a wide range of consumers. About 70% of the company’s yearly revenues and profits come from these brands plus Arm & Hammer.
Despite its efforts to increase the market for its products, the company still gets more than 80% of its sales from its home market in the United States.
Despite being smaller than many of its competitors, the firm has produced a solid return on capital without deviating from its primary areas of personal care and home products.
During the pandemic, sales for several of the Church & Dwight Co., Inc. (NYSE:CHD)’s products climbed, making its product portfolio one of the most stable in the industry. The company’s well-known brands, like Arm & Hammer, now provide a wider range of items.
It saw a 5.3% year-over-year growth in its organic sales last year (revenue not derived from acquisitions), and it anticipates growing at a rate of 4% to 5% in 2024. The company estimates that it will have a 7%-9% growth in earnings per share in 2024.
The company’s excellent product launches, growth in market share across several categories, and solid international performance all contributed to the outstanding results in the recent Q2 2024.
TD Cowen analyst Robert Moskow maintained a Buy recommendation on the Church & Dwight Co., Inc. (NYSE:CHD) with a $114 price objective. Moskow praised the strong Q2 results, which exceeded sales and EPS projections. Despite a pessimistic view for the second half of 2024 due to softening category trends, CHD has a competitive edge because of its better gross margin, rise in organic sales, and gains in market share in some categories. Moskow expects steady growth with a balanced portfolio of luxury and value products, with 21% of sales coming from digital channels. He is additionally hopeful that the household and personal care products company will hit the higher end of its EPS target and underline the potential for more margin growth.
Terry Smith’s Fundsmith LLP is the largest shareholder in the company, with 6,914,366 shares worth $716.88 million.
5. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Investors: 38
The Clorox Company (NYSE:CLX) is another household product and personal care company with a number of brands that can deliver outcomes in good times and bad. The firm has expanded to compete in a number of consumer product categories since its founding more than a century ago, including cleaning supplies, laundry care, trash bags, cat litter, charcoal, food dressings, water-filtration products, and natural personal care items.
Apart from its namesake brand, the company’s portfolio includes Liquid-Plumr, Pine-Sol, S.O.S, Tilex, Kingsford, Fresh Step, Glad, Hidden Valley, KC Masterpiece, Brita, and Burt’s Bees. Less than 85% of Clorox’s revenues occur within its home country.
The results of Clorox’s efforts to mitigate the effects of severe inflationary headwinds and supply chain unrest were overshadowed when, in mid-August 2023, a cybersecurity attack compelled it to take certain IT systems, including ordering offline. Even though this initially hampered sales and profitability, analysts do not believe the company’s competitive advantage has diminished. Conversely, they believe that its well-established relationship with retailers will allow it to gradually regain its shelf position, much like its inventory recovery after the pandemic.
Revenue dropped by 5.75% in the company’s fiscal 2024, which concluded in June 2024, but it was still able to deliver strong profit growth due to lower manufacturing and logistics costs and cost-saving initiatives. Long-term, The Clorox Company (NYSE:CLX)’s “IGNITE” strategy concentrates on accelerating long-term development through innovation, cost savings, and portfolio expansion.
Ken Griffin’s Citadel Investment Group is the largest shareholder in the company, with 2,830,472 shares worth $386.27 million.
4. Kimberly-Clark Corporation (NYSE:KMB)
Number of Hedge Fund Investors: 43
Kimberly-Clark Corporation (NYSE:KMB) is one of the industry’s top manufacturers of tissue and hygiene products; its brands include Huggies, PullUps, Kotex, Depend, Kleenex, and Cottonelle. It also runs a company called K-C Professional, which works with companies to offer hygienic and safety solutions for the workplace. The company makes up more than fifty percent of its sales from personal care products and another third from consumer tissue products. The remaining sales are mostly from Asia and Latin America.
Similar to its contenders, the company has faced numerous difficulties, such as a sluggish economy and increased cost pressures. In this regard, management has been candid about the company’s declining market share and the fact that consumers are increasingly moving to less expensive options in certain categories to save money. However, given that supply and demand imbalances in the industry have largely been resolved, analysts believe this could lead to a spike in growth throughout the company’s categories.
Having a goal toward approximately $3.7 billion in savings and productivity gains, Kimberly is about to unlock efficiency and cut costs through technological advancements, supply chain enhancements, and organizational reorganization, as per Morningstar analysts. This should encourage reinvestment in the company while increasing earnings.
With a $160 price target, Bank of America Securities’ Anna Lizzul kept her Buy rating on the firm. Its impressive EPS performance, personal care volume growth, and margin expansion more than make up for the minor top-line disappointment. Lizzul is confident that Kimberly-Clark Corporation (NYSE:KMB) can overcome cost obstacles and leverage its growth plans, as seen by its optimistic forecast.
It is also one of the “10 Stocks Jim Cramer Thinks You Should Check Out.” He states:
“Kimberly-Clark is a Dallas-based company, and like the best NFL defenses, it can give you steady production from its 3.3% yield along with upside from real organic growth. They had 4% organic growth in the most recent quarter, and with rate cuts on the horizon, it’ll be a good year for high-yielding consumer staples, and Kimberly-Clark is among the best of the best. Hence the Cowboys analogy. Cowboys, don’t get mad at me—I thought your defense was great! You annihilated us Eagles when we went down to see you in Dallas.”
Jean-Marie Eveillard’s First Eagle Investment Management is the largest shareholder in the company, with 9,025,827 shares worth $875.87 million.
3. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Investors: 52
Colgate-Palmolive Company (NYSE:CL) is a company that produces and sells consumer goods. The segments that run it are Pet Nutrition, Oral, Personal, and Home Care. Products related to oral, personal, and home care include toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, skin care products, dishwashing detergents, fabric conditioners, and household cleaners.
Over 40% of its total revenue comes from its branded oral care line. Sales outside of the country account for over 70% of its total revenue, with developing countries accounting for 45% of those sales.
While there are concerns regarding the security of consumers’ finances and ultimately their willingness to pay for the necessities in the company’s portfolio, the company is effectively managing the uncertain environment with caution. Under the direction of CEO Noel Wallace, CL has shifted its focus to spending more on R&D and marketing, i.e., on its core mix, in adjacent categories, and across the digital space, and responding more quickly to shifting consumer preferences. As a result, products are now on the market in less than six to twelve months, as opposed to the previous 18 to 36 months. Colgate’s long-term organic sales growth aim of 3%–5% has been met or exceeded for 22 consecutive quarters, proving the validity of this approach.
The company has spent an average of more than 12% of sales on marketing over the last four years, which is 120 basis points more than what was allotted in 2017–19. These results are attributed to increased brand spending and a renewed emphasis on consumer-valued innovation, even when it implies a higher cost.
ClearBridge Investments mentioned Colgate-Palmolive Company (NYSE:CL) in its Q2 2024 investor letter. Here is what the firm said:
“Colgate-Palmolive, added to the portfolio in 2023, started outperforming materially toward the tail end of last year as growth, margin and market share momentum began to turn favorably, and that momentum has continued year to date as the stock has nicely outperformed the large cap staples group. The fundamental upside has been driven by a combination of healthy organic growth (with positive volumes), good gross margin progression, and strong re-investment spending supporting market share gains and future growth.”
Jean-Marie Eveillard’s First Eagle Investment Management is the largest shareholder in the company, with 9,025,827 shares worth $875.87 million.
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.
1. Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Investors: 64
The most well-known and biggest manufacturer of home and personal care products globally is Procter & Gamble Company (NYSE:PG). Having been in business for nearly 200 years, P&G is the owner of over 20 billion-dollar brands, such as Bounty, Tide, and Crest. The company benefits from a vast distribution network as well as connections to numerous retailers and other end users. It also ranks among the world’s largest advertisers. Over half of the firm’s consolidated sales come from sales outside of its home market (U.S.).
Except for the corporate segment, the Cincinnati-based company’s beauty division, which includes renowned skin and personal care brands like Olay, Old Spice, Safeguard, Secret, SK-II, and Native, as well as haircare brands, accounted for 18% of the company’s net sales in 2024.
Hence, Procter & Gamble Company (NYSE:PG) has diversified into a number of markets, including cleaning supplies, grooming goods, health and beauty products, and more, which puts them in a solid position to consistently deliver strong results. In addition, it has paid a dividend for 134 years running and has been a dividend achiever, raising its payout annually for 68 of those years.
After the company’s Q4 earnings beat, RBC Capital increased its price objective for the company to $164 from $157 and maintained a Sector Perform rating on the shares. The company is weathering the hard market successfully, especially as several of its competitors see better trends as a result of their own turnaround efforts, although the stock’s valuation is “full at current levels,” according to the analyst in a research note.
Overall, P&G’s dedication to innovation, sustainability, and strong cash flow positions it to meet growing consumer demand and deliver value to shareholders.
Ken Fisher’s Fisher Asset Management is the largest shareholder in the company, with 17,550,134 shares worth $2.89 billion.
While we acknowledge the potential of the 10 Best Household and Personal Care Stocks to Buy, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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