In this article, we will take a look at some of the best aesthetic stocks to buy now.
In the face of economic uncertainty, consumer preferences in the beauty industry are changing. A Bloomberg Intelligence poll conducted in June 2024 with 650 participants found that 40% of respondents gave beauty and personal care purchases more importance than other products. Nonetheless, this represents the lowest result since the survey’s launch two years ago, a 10-percentage-point drop from January.
Despite the continued success of premium cosmetic products, there is less demand for mainstream, reasonably priced products, which make up the majority of the market. Leonard Lauder’s “Lipstick Index” theory, which associates economic slowdowns with increased spending on self-care, seems less sound these days. Although the beauty industry has grown significantly over the last five years, Andrea Felsted, a Bloomberg Opinion columnist, observes that customer interests are beginning to shift.
This drop in affordable beauty purchases raises questions about how well the industry can withstand economic downturns. The results point to changing customer behavior, with high-end products performing better and less expensive markets being squeezed during difficult economic conditions.
Amidst this shift, according to Ulta CEO Dave Kimbell, younger generations, Gen Z and Gen Alpha, are more willing to spend money on beauty than previous generations, especially on skincare or as a way to express themselves. He also mentioned that a growing percentage of Americans are Hispanic consumers, who are more likely to be active in the area. Here are some comments from Kimbell:
“While we anticipate that some of these headwinds will persist in the near term, we are confident in our ability to deliver on our plans and set ourselves up for long-term growth.”
Meanwhile, the market for medical aesthetics, or procedures meant to enhance patients’ physical attractiveness, is expected to grow in the future. According to research by senior partner Olivier Leclerc and colleagues, the CAGR for neuromodulators like Botox is anticipated to reach 11.9 percent in the US and Canada by 2025. By 2025, the compound annual growth rate for injectable dermal fillers, such as biostimulators and hyaluronic acid fillers, may reach 3.8 percent. Moreover, as per McKinsey’s research report, through 2025, the medical aesthetics industry is expected to continue growing at a rate close to double digits.
In one of the recent developments, finance solutions like “buy-now, pay-later” loans are being given to make cosmetic procedures more affordable because of the rising demand for these procedures in the United States, as reported by Bloomberg. While the demand spike from the pandemic has subsided, rates of aesthetic procedures are still substantially higher than they were before COVID, with a 2023 increase over 2024, according to a June 2024 study from the American Society of Plastic Surgeons.
Financing programs that divide expenses ranging from $200 to $10,000 into smaller installments over three to sixty months are now advantageous for facial procedures and other treatments. These choices are especially appealing to younger consumers because they frequently include interest-free terms and low credit requirements. According to Bloomberg, sales of asset-backed securities in the United States have increased by almost 20% year over year, reflecting this trend in the larger financial market. This highlights the connection between high customer demand and innovative financial solutions.
With that said, here are the 11 Best Cosmetic Surgery and Aesthetics Stocks to Invest in Now.
A medical technician examining a device used in laser and energy-based aesthetics systems.
Our Methodology:
In this article, we first used a stock screener, to list down all Cosmetic Surgery and Aesthetics Stocks (as of the writing of this article) with the highest institutional ownership. From the resultant dataset, we chose 11 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 900 hedge funds in Q3 2024 to gauge hedge fund sentiment for stocks.
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)
11. AVITA Medical Inc. (NASDAQ:RCEL)
Number of Hedge Fund Investors: 3
One of the Best Aesthetics Stocks, AVITA Medical, Inc. (NASDAQ:RCEL) is a regenerative medicine company that operates in the United Kingdom, Japan, Australia, and the United States. The company provides regenerative treatments to treat medical issues such as burn injuries, traumatic injuries, chronic wounds, and skin and aesthetic concerns like vitiligo and anomalies of full-thickness skin. By using less donor skin and transforming a patient’s skin cells into a spray-on solution for healing and repigmentation, the RECELL technique speeds up recovery.
Strong Q3 2024 financial results and business updates from AVITA Medical, Inc. (NASDAQ:RCEL) have shown the company’s encouraging growth trajectory and prospects. The business recorded $19.5 million in commercial revenue, a strong 44% growth from the previous year, and an outstanding gross profit margin of 83.7%. This was fueled by the switch to RECELL GO, increased market share in current accounts, and the acquisition of new clients for the treatment of full-thickness skin defects. These margins are impressive for an organization of Avita’s scale, even though they are slightly lower than the previous year due to the engineering and validation costs associated with the RECELL GO platform. As of September 30, 2024, the company has $44.4 million in cash on hand, putting it in a great position to execute its strategic ambitions.
AVITA Medical, Inc. (NASDAQ:RCEL) anticipates 58%-72% revenue growth in Q4 2024 and plans to achieve GAAP profitability by Q3 2025, backed by excellent execution and creative solutions like RECELL GO. Its high margins and excellent pipeline make it an attractive investment option despite rising costs.
D. E. Shaw’s D E Shaw was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 67,096 shares worth $719,269 as of Q3.
10. AirSculpt Technologies Inc. (NASDAQ:AIRS)
Number of Hedge Fund Investors: 4
AirSculpt Technologies, Inc. (NASDAQ:AIRS) offers body contouring services under the Elite Body Sculpture brand, offering a first-rate customer experience. Elite Body Sculpture offers unique body sculpting utilizing their revolutionary AirSculpt technology, eliminating excess fat in a minimally invasive process. Some of their specialty treatments include the Power BBL (Brazilian butt lift), Up a Cup (breast enlargement), and Hip Flip (hourglass contouring).
In Q3 of 2024, AirSculpt Technologies, Inc. (NASDAQ:AIRS) had an operating cash flow growth of 188.19% YoY. The business that provides upscale body sculpting procedures announced four new facility openings in Q3 2024, and the 2023 de novo class continues to outperform its projections.
Along with plans to establish five new facilities, the company reiterates its 2024 revenue projection of $183-$189 million and maintains adjusted EBITDA at $23-$28 million with a 50% cash conversion rate.
BTIG began covering AirSculpt Technologies, Inc. (NASDAQ:AIRS) on October 17, 2024. In a research note, the analyst informed investors that AirSculpt is a nationwide provider of body contouring operations, with 29 active sites in the United States, one in Canada, and one in the United Kingdom. The firm claims that although launching new centers has allowed AirSculpt to counteract consumer spending challenges, higher marketing expenditures have put additional strain on its profits.
Stephen White’s SW Investment Management was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns over 4.5 million shares worth $23.07 million as of Q3.
9. Apyx Medical Corporation (NASDAQ:APYX)
Number of Hedge Fund Investors: 5
One of the Best Aesthetics Stocks, Apyx Medical Corporation (NASDAQ:APYX) is a manufacturer of medical devices that uses energy technology. It focuses on creating, producing, and selling a variety of surgical and cosmetic devices and technologies, along with associated medical equipment for use in hospitals, clinics, and doctor’s offices. The company’s product line includes Renuvion cosmetic technology, which enables plastic surgeons, facial plastic surgeons, and cosmetic doctors to apply controlled heat to tissue in order to produce the targeted effects. The J-Plasma technique essentially avoids unintended tissue damage and enables surgeons to work with extreme accuracy. It is divided into two business segments: Original Equipment Manufacturing (OEM) and Advanced Energy. The majority of its revenue comes from its Advanced Energy area.
In Q3 of 2024, the OEM revenue of $2.2 million increased by 3% year-over-year. The cash grew by 27% YoY. Apyx Medical Corporation (NASDAQ:APYX) started a cost-cutting restructuring program that included a 25% decrease in US employees for an annual savings of $4.3 million, reduced credit covenants, and a $7.0 million offer to strengthen its balance sheet. Disposable handpiece revenue increased 9% overall and 15% YoY in the United States, with plans to introduce the innovative Ayon system in 2025.
Constantinos J. Christofilis’s Archon Capital Management was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q3 2024. It owns more than 3.1 million shares worth $3.86 million as of Q3.
8. Cutera Inc. (NASDAQ:CUTR)
Number of Hedge Fund Investors: 7
Cutera, Inc. (NASDAQ:CUTR) is one of the top suppliers of dermatological and cosmetic products to healthcare providers globally and among the Best Aesthetics Stocks.
Cutera, Inc. (NASDAQ:CUTR) develops, produces, and sells energy-based product platforms aimed mainly at healthcare providers. It also distributes third-party skincare products. As a result, it is well-positioned in the markets for aesthetics and cosmetic surgery.
In Q3 2024, Cutera, Inc. (NASDAQ:CUTR) reported $32.5 million in consolidated revenue. Sales of international capital systems drove AviClear’s revenue by a 16% rise in Q3 2024 compared to the same period the previous year. Global core capital increased by 7% on a sequential quarterly basis. Management has reaffirmed Cutera, Inc.’s (NASDAQ:CUTR) full-year revenue projection of $140 million to $145 million, as well as its guidance for year-end 2024 cash, cash equivalents, and restricted cash of about $40 million.
Glenn Russell Dubin’s Highbridge Capital Management was the largest stakeholder in the company among the funds in Insider Monkey’s database. It owns over 32.6 million shares worth $13.36 million as of Q3.
7. InMode Ltd. (NASDAQ:INMD)
Number of Hedge Fund Investors: 18
InMode Ltd. (NASDAQ:INMD) is a US-based company that offers minimally invasive surgical aesthetic and medical treatments. Being one of the Best Aesthetics Stocks, its products and solutions focus on three energy-based treatment categories: face and body contouring, medical aesthetics, and women’s health.
InMode Ltd. (NASDAQ:INMD) has created solutions for ophthalmology, gynecology, dermatology, and plastic surgery utilizing their technology. Its product platforms include Morpheus8, EmbraceRF, EvolveX, Evoke, EmpowerRF, Optimas, Votiva, Contoura, Triton, and BodyTite. The United States accounts for the majority of company revenue.
Revenue increased by 6% YoY in Q3 2024 due to fulfilling $31.9 million in pre-orders from the first half of 2024, which offset slower demand for consumables and new platform sales. The cash grew by 1.34% YoY.
On 17 October 2024, BTIG began covering InMode Ltd. (NASDAQ:INMD) with a $25 price target and a Buy rating. In a research note, the analyst informs investors that InMode is a top worldwide supplier of energy-based medical technology utilized for minimally invasive surgical aesthetic procedures. According to the firm, the demand for aesthetic capital procedures and equipment has decreased in recent quarters, causing the stock to trade at four-year lows. However, as the macroeconomic climate stabilizes, BTIG sees several ways the company can resume growth. The firm argues that the risk/reward combination from this point is appealing because the stock is priced at eight times the 2025 profit expectations.
Pedro Escudero’s Doma Perpetual Capital Management was the largest stakeholder in the company among the funds in Insider Monkey’s database. It owns more than 2.2 million shares worth $37.96 million as of Q3.
6. Establishment Labs Holdings Inc. (NASDAQ:ESTA)
Number of Hedge Fund Holders: 24
One of the Best Aesthetics Stocks, Establishment Labs Holdings Inc. (NASDAQ:ESTA) is a medical technology business that sells both cosmetics and medical equipment. It works on the development, production, and distribution of silicone-filled breast and body-shaping implants. The Motiva Implants brand is used by the business to market its products. Through direct sales, it distributes its products to physicians, clinics, hospitals, and medical distributors. Its geographical divisions include Asia-Pacific/Middle East, Europe, Latin America, and others.
Revenue increased by 4.47% year over year in Q3 2024 as a result of higher account onboarding and strong initial demand for Motiva Implants in the U.S. after FDA approval. In just three weeks after launch, Motiva Implants onboarded over 250 new accounts, and they are now adding 15 accounts per day. Moreover, Establishment Labs Holdings Inc. (NASDAQ:ESTA) is focusing on global expansion, with revenue in the United States likely to exceed $35 million by 2025.
BTIG maintained a Buy rating on the shares and increased the price target for Establishment Labs Holdings Inc. (NASDAQ:ESTA) from $62 to $65 on October 14, 2024, as part of an updated research note that previewed the Q3 MedTech results. In a research note, the analyst informed investors that the sector had “solid returns”. These results largely align with fundamental feedback during Q3, as procedure volumes have been healthy and demand is strong. According to the firm, channel assessments in numerous subsectors also indicate that procedure demand would remain strong through 2025 due to support from low unemployment and demographics.
Wilmot B. Harkey And Daniel Mack’s Nantahala Capital Management was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns more than 2.3 million shares worth $102.08 million as of Q3.
5. Bausch Health Companies Inc. (NYSE:BHC)
Number of Hedge Fund Investors: 30
Bausch Health Companies Inc. (NYSE:BHC) is among the Best Aesthetics Stocks. It is a multinational pharmaceutical firm that works in the dermatology and cosmetic medicine industries. Through its majority stake in Bausch & Lomb, it develops, manufactures, and markets a variety of goods. In addition to other cosmetic items and aesthetic treatments, the company offers skincare products, dermal fillers, and minimally invasive procedures.
The company’s revenue is broken down into five segments: Bausch + Lomb, International, Solta Medical, Diversified Products, and Salix. The Bausch + Lomb sector yields the highest revenue.
For the sixth consecutive quarter, revenue and adjusted EBITDA (non-GAAP) both increased year over year. This was achieved as the business proceeded to develop the R&D pipeline, which included approving and launching CABTREO in Canada. Consolidated revenues for the third quarter of 2024 were $2.51 billion, up 12% year over year, with growth across every segment. Revenue for the Bausch + Lomb sector was nearly $1.2 billion, a 19% YoY increase.
Carl Icahn’s Icahn Capital LP was the largest stakeholder in the company among the funds in Insider Monkey’s database. It owns over $118.6 million shares worth $17.47 billion as of Q3.
4. Hologic Inc. (NASDAQ:HOLX)
Number of Hedge Fund Investors: 35
Being one of the Best Aesthetics Stocks, Hologic, Inc. (NASDAQ:HOLX) produces exclusive items to meet women’s healthcare requirements. The company has five business segments: diagnostics (44% of total sales), breast health (38%), surgery (16%), and skeletal health (2%). Although the business has historically prioritized breast health, the acquisition of Gen-Probe increased its focus on commercial testing. The greatest source of the company’s income is the United States (69%), which is followed by Europe (20%), Asia (8%), and other foreign markets (3%). The headquarters of Hologic are located in Bedford, Massachusetts. It is a market leader in women’s health, offering a variety of products that have set the benchmark for quality care.
Revenue of $987.9 million in Q4 2024 grew 4.5% year over year as a result of robust organic growth in several important segments. U.S. revenue climbed 4.2% year over year to $745.6 million. International revenue of $242.3 million increased by 5.4% year on year. In fiscal 2025, Hologic, Inc. (NASDAQ:HOLX) anticipates a strong implementation of its broad-based growth strategy.
Following its Q4 results and preliminary FY25 guidance, RBC Capital increased the price target on Hologic, Inc. (NASDAQ:HOLX) from $86 to $89 per share on November 5, 2024. In a research note to investors, the firm argued that the forecast is “achievable,” the operating margin objective of low 30% is “realistic,” and the management’s focus on M&A and buybacks is still “preferable.” According to RBC, the company’s management additionally highlighted its attempts to grow and enter new foreign markets, even though they have traditionally had lower profit margins than the U.S. business.
Jim Simons’s Renaissance Technologies was the largest stakeholder in the company among the funds in Insider Monkey’s database. It owns more than 2.8 million shares worth $229.57 million as of Q3.
ClearBridge Sustainability Leaders Strategy made the following comment about Hologic, Inc. (NASDAQ:HOLX) in its Q3 2023 investor letter:
“We continue to be active in positioning our holdings in the health care sector, in the quarter initiating a new position in Hologic, Inc. (NASDAQ:HOLX), a medical technology company focused on women’s health with leading positions in medical diagnostics, medical imaging systems and surgical devices. The company has used profits generated during the pandemic to diversify the business and increase recurring revenues, as well as return capital to shareholders. We believe Hologic is well-positioned to drive stable growth and improve profitability going forward and has a very strong balance sheet to fund future growth initiatives. Hologic’s products help detect cancer as well as a variety of infectious diseases, including COVID-19, thus improving health care outcomes for patients.”
3. Zimmer Biomet Holdings Inc. (NYSE:ZBH)
Number of Hedge Fund Investors: 43
One of the Best Aesthetics Stocks, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is a company that designs, produces, and sells orthopedic surgical instruments, supplies, and reconstructive implants. In the US, Europe, and Japan, the firm now has the largest portion of the reconstructive market with its acquisitions of Centerpulse in 2003 and Biomet in 2015. Large joint sales account for almost two-thirds of overall revenue, with extremities, trauma, sports medicine, and associated surgical products accounting for the remaining fourth. In 2022, the company separated its dental and spine businesses.
Although the pandemic halted growth, Zimmer Biomet Holdings, Inc. (NYSE:ZBH)’s efforts to turn itself around have been commendable. The business is currently attempting to profit from the normalization of procedure volume and Rosa robot placements. The deployment of Zimmer Biomet’s Rosa robots in ambulatory surgical centers and hospitals has advanced significantly, opening the door for higher-margin implant pull-through.
Zimmer Biomet Holdings, Inc. (NYSE:ZBH) reported strong third-quarter 2024 results, with tight control of expenses and sustained mid-single-digit growth on the top line. Revenue increased by 4% YoY, owing to strong product demand, new launches, and contributions from recent acquisitions such as OrthoGrid Systems. Moreover, the cash grew by 98% YoY in this quarter.
Following its Q3 results, RBC Capital maintained its Outperform rating on Zimmer Biomet Holdings, Inc. (NYSE:ZBH)’s shares and increased its price objective from $120 to $125 on November 4, 2024. In a research note, the analyst notified investors that the company is now positioned for future growth as the quarter’s low point has passed. RBC noted, however, that it continues to support Zimmer’s focus on M&A and innovation.
Michael Rockefeller And Karl Kroeker’s Woodline Partners was the largest stakeholder in the company among the funds in Insider Monkey’s database. It owns 916,927 shares worth $98.98 million as of Q3.
2. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Investors: 68
The biopharmaceutical business AbbVie Inc. (NYSE:ABBV) focuses on developing and marketing innovative therapies, such as cosmetic and dermatological products. The company, being one of the Best Aesthetics Stocks, offers aesthetic procedures like BOTOX Cosmetic and JUVÉDERM dermal fillers to treat wrinkles and facial volume loss.
Revenue increased 4% year over year in Q3 2024, showing robust growth in the Skyrizi, Rinvoq, and Neuroscience portfolios. The aesthetics portfolio generated $1.239 billion in net revenues worldwide. While global Juvederm net revenues decreased 19.7% year over year to $258 million, global Botox Cosmetic net revenues increased by 8.2% to $671 million.
Significant market expansions were made by Allergan Aesthetics when it received FDA approval for its platysma band-targeting Botox Cosmetic and introduced its masseter muscle prominence (MMP) treatment in China. At the ASDS conference, AbbVie Inc. (NYSE:ABBV) also presented its modern research and patient-centered tactics.
The firm increased its adjusted EPS outlook for 2024 to $10.90-$10.94, excluding IPR&D and milestone expenses incurred after Q3 and the upcoming Aliada Therapeutics acquisition.
In October of this year, AbbVie Inc. (NYSE:ABBV) increased its quarterly dividend by about 6% to $1.64 per share. The firm extended its dividend growth streak to 52 years with this increase.
Ken Griffin’s Citadel Investment Group was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns over 2.4 million shares worth $487.28 million as of Q3.
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Investors: 81
The multinational healthcare firm Johnson & Johnson (NYSE:JNJ), through its subsidiary MENTOR, specializes in breast reconstruction and aesthetics. For use in cosmetic and reconstructive breast surgery treatments, the company offers breast implants, tissue expanders, and other surgical materials. Mentor’s Breast Implant Simulator app allows users to submit images or use real-time video to model implant sizes. It uses augmented reality to display breast augmentation outcomes. It also provides educational content, connects users to nearby surgeons, and makes it easier to share discoveries for feedback.
Revenue increased by 5.25% YoY to $22.47 billion in the third quarter of 2024, with Innovative Medicine leading the way with a 4.9% YoY growth to $14.58 billion. Moreover, the MedTech division, which encompasses aesthetics, reported a 6.4% increase in operational sales in the third quarter of 2024. Acquisitions such as Abiomed had a favorable effect on this division. The firm produced $14 billion in free cash flow in the first nine months of this year, compared to $11.9 billion in the same period last year.
For the past 62 years, Johnson & Johnson (NYSE:JNJ) has consistently increased its dividends. The current quarterly dividend paid by the firm is $1.62 per share.
An analyst at Wolfe Research named Alexandria Hammond began covering Johnson & Johnson (NYSE:JNJ) with a $190 price target and an Outperform rating. Beyond Mounjaro/Zepbound from Lilly (LLY), the firm anticipates growth names and/or “dream the dream” names to win in 2025. J&J’s Pharma growth drivers, including JNJ-2113, Tremfya, nipocalimab, Carvykti, and Drazalex Faspro, are viewed as “best-in-class” by the firm. Moreover, Wolfe predicts that J&J’s revenue would increase by at least 3% despite Stelara’s loss of exclusivity challenges.
Ken Fisher’s Fisher Asset Management was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 7,560,199 shares worth $1.23 billion as of Q3.
Overall, Johnson & Johnson (NYSE:JNJ) ranks first on our list of the Best Cosmetic Surgery and Aesthetics Stocks to Invest in Now. While we acknowledge the potential for JNJ 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 JNJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. 11 Best Cosmetic Surgery and Aesthetics Stocks to Invest in Now is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
