10 Best Skincare Stocks to Buy According to Hedge Funds

1. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Investors: 79

Procter & Gamble Company (NYSE:PG) is the Best Beauty Stock and has become one of the world’s largest consumer product manufacturers. Sales outside of the company’s home market (the United States) account for more than half of its total sales. The beauty division of the Cincinnati-based company includes renowned skin and personal care brands like Olay, Old Spice, Safeguard, Secret, SK-II, and Native, and hair care brands like Head & Shoulders, Herbal Essences, Pantene, and Rejoice, which accounted for 18% of the company’s net sales in 2024, excluding the corporate segment.

In the second quarter of FY25, Procter & Gamble (NYSE:PG) reported net sales of $21.9 billion, up by 2% year over year. The gain in organic sales was 3%. While Personal Care’s double-digit growth was driven by innovation and volume gains, Hair Care’s expansion in North America, Europe, and Latin America contributed to the Beauty segment’s organic sales rising by 2% YoY. Despite the popularity of the premium SK-II brand, Skin Care suffered a mid-single-digit loss due to decreasing volume.

Procter & Gamble Company (NYSE:PG)’s strategic aims, which include marketing and product innovation expenditures to support its portfolio of everyday, essential items, should ensure that its brands retain influence over consumers and retailers, thereby maintaining its broad moat over time.

Stifel increased the firm’s price target from $161 to $165. The company reports that after “solid” fiscal Q2 performance and the restatement of full-year guidance, its FY25-FY26 EPS expectations are mostly unchanged.

Overall, Procter & Gamble Company (NYSE:PG) ranks first on our list of the 10 Best Skincare Stocks to Buy According to Hedge Funds. While we acknowledge the potential for PG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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