10 Under-the-Radar Stocks with Massive Upside for 2025

7. Coty Inc. (NYSE:COTY)

Upside Potential: 39.28%

Stock Price as of January 18: $7.18

Number of Hedge Fund Investors: 26

Coty Inc. (NYSE:COTY) is a global beauty company specializing in cosmetics, fragrances, and skincare products. The company owns popular brands such as CoverGirl and Sally Hansen and collaborates with high-profile celebrities for product launches.

Coty Inc. (NYSE:COTY) has been at the forefront of digital transformation, recognizing the growing importance of online channels in the beauty industry. The company has made significant strides in expanding its e-commerce presence. This growth is driven by a robust omnichannel approach, where online and offline channels work in harmony to enhance customer engagement and drive sales. Coty Inc.’s (NYSE:COTY) strong partnerships with platforms like Amazon and its own retail websites have been instrumental in this success. The company continues to invest in digital marketing, advocacy marketing, and retail.com marketing to convert online advocacy into sales, particularly among younger consumers who are increasingly connected through social media and influencer ecosystems.

Coty Inc. (NYSE:COTY) has been actively repositioning its brands to align with current consumer trends and preferences. The company has revitalized its heritage brands such as Rimmel and CoverGirl, which have been repositioned with a focus on creating products that resonate with younger consumers and have the potential to go viral. Additionally, Coty Inc. (NYSE:COTY) is investing in agile beauty, a new approach that accelerates the innovation process and allows the company to bring new products to market more quickly and efficiently. This strategy is particularly important in the Consumer Beauty division, where Coty Inc. (NYSE:COTY)  aims to diversify into other categories such as mass fragrances and skincare.

Furthermore, Coty Inc. (NYSE:COTY) has been expanding its presence in growth engine regions, such as Latin America and Southeast Asia, to tap into emerging markets with high potential. Coty Inc. (NYSE:COTY) has been diversifying its portfolio beyond fragrances into cosmetics and skincare. The company has launched new brands and products, such as Gucci makeup and Marc Jacobs beauty, as a part of this strategy to capture new market segments and drive growth.