10 Best Skincare Stocks to Buy According to Hedge Funds

2. Colgate-Palmolive Company (NYSE:CL)

Number of Hedge Fund Investors: 62

One of the Best Beauty Stocks, Colgate-Palmolive Company (NYSE:CL), was established in 1806 and has since expanded to become a major force in the home and personal care industries. The company manufactures skincare products such as sunscreens. Moreover, the firm manufactures shampoos, shower gels, deodorants, and other homecare products that are delivered to more than 200 countries in addition to its renowned dental care line, which accounts for more than 40% of its total sales. Sales overseas account for about 70% of its total revenue, with developing countries accounting for 45% of this total.

In 2018, Colgate-Palmolive Company (NYSE:CL) began acquiring Filorga®, EltaMD®, and PCA SKIN® brands with the goal of creating a world-class, professionally recognized, and scientifically validated skin health company.

In 2024, Colgate-Palmolive Company (NYSE:CL) achieved net sales of over $20 billion for the first time, with organic sales growth of 7.4% across all product categories and divisions. The EPS of the business grew by double digits. While maintaining its global leadership in toothpaste (41.4% market share) and manual toothbrushes (32.2%), the company increased its gross profit margins. Operating cash flow was $4.1 billion, up 10% year over year, and was utilized to distribute $3.4 billion in dividends and stock buybacks to shareholders. The corporation raised marketing spending by 15% after growing it by 19% in 2023, showing the power and inventiveness of its brand.

Despite currency headwinds and the anticipated exit from private-label pet nutrition, Colgate-Palmolive Company (NYSE:CL) is still poised to sustain EPS growth in 2025 due to its high profit margins, strict cost control, and ongoing developments in digital and analytics.