10 Best Skincare Stocks to Buy According to Hedge Funds

7. Kenvue Inc. (NYSE:KVUE)

Number of Hedge Fund Investors: 38

Revenue Growth Rate (year-over-year): 0.07%

Kenvue Inc. (NYSE:KVUE) is among the Best Beauty Stocks and the world’s largest pure-play consumer health company by revenue, with $15 billion in annual revenue. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. Formerly Johnson & Johnson’s consumer division, the company spun out and went public in May 2023. Given its ability to use funds and make investments as a stand-alone company, analysts expect Kenvue to prioritize expanding its 15 priority brands, which include Tylenol, Nicorette, Listerine, and Zyrtec, to fuel future growth.

Strong productivity improvements helped Kenvue Inc. (NYSE:KVUE) achieve a 200 basis point increase in adjusted gross margin in Q4 2024, bringing it to 60.4%. Furthermore, the business raised its overall brand investment by about 20%, increasing its advertising spend from 8.7% of sales in 2024 to 10.6% of sales in 2024. Nearly 80% of brands, including well-known names like Tylenol, Zyrtec, and Nicorette, increased their market share in the self-care segment.

Most importantly, volume-led growth was achieved by the skin health and beauty segment, which performed exceptionally well in Latin America and EMEA. Further improving operational efficiency is Kenvue Inc. (NYSE:KVUE)’s “View Forward” effort, which is on track to generate $350 million in annualized savings by 2026 with notable cost reductions throughout its infrastructure.

In 2025, the firm intends to introduce 40% more innovations, and the company anticipates that stronger brand investments, better distribution, and active trade and marketing campaigns will boost revenue growth in the second half of the year.