12 Best Beauty Stocks to Buy According to Hedge Funds

8. Spectrum Brands Holdings Inc. (NYSE:SPB)

Number of Hedge Fund Holders: 37

One of the Best Beauty Stocks, Spectrum Brands Holdings, Inc. (NYSE:SPB) is a firm that sells consumer products and household necessities. The business supplies consumer batteries, locksets for homes, hardware for home builders, grooming supplies, and personal care items. The company oversees operations in three product-focused segments: home and garden, global pet care, and home and personal care. North America, Europe, the Middle East and Africa, Latin America, and Asia-Pacific are the regions where the company manufactures, markets, and distributes its goods.

In fiscal Q4 2024, Spectrum Brands Holdings, Inc. (NYSE:SPB) achieved a revenue increase of 4.46% YoY as a result of its ongoing business investments. Despite an additional $62 million spent on R&D, marketing, and advertising, the company produced impressive results in fiscal 2024, with adjusted EBITDA growing by more than 20%.

After finishing the year with net leverage below 0.6 turns, the balance sheet showed tremendous strength, enabling future expansion. Spectrum Brands Holdings, Inc. (NYSE:SPB) increased its quarterly dividend by 12% to $0.47 per share, showing confidence in its projections. As consumers shifted to online shopping, e-commerce sales became a major growth engine.

Net sales for the Home & Personal Care (HPC) division grew 4.1% year over year, with a 5.4% increase in organic net sales after deducting a $4.4 million negative foreign exchange impact. Both the Home and Personal Care categories witnessed mid-single-digit growth, which drove the increase in organic net sales. Increased promotional activity contributed to higher sales volumes in all categories.

Brian McNamara, a Canaccord analyst, increased the firm’s price objective for Spectrum Brands Holdings, Inc. (NYSE:SPB) from $91 to $94. Sales were almost 4% higher than expected, while profitability metrics fell short, according to the company’s mixed Q4 of 2024 results.