12 Best Beauty Stocks to Buy According to Hedge Funds

5. Kenvue Inc. (NYSE:KVUE)

Number of Hedge Fund Holders: 46

One of the Best Beauty Stocks, Kenvue Inc. (NYSE:KVUE) is the world’s largest pure-play consumer health company by revenue, with $15 billion in annual revenue. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health.

The company, formerly the consumer division of Johnson & Johnson, spun out and went public in May 2023. Analysts anticipate that Kenvue would prioritize expanding its 15 priority brands—including Tylenol, Nicorette, Listerine, and Zyrtec—to fuel future growth, given its ability to use funds and make investments as a stand-alone company.

Many of the most well-known brands in the industry are included in its portfolio, including Johnson’s, Neutrogena, Listerine, Tylenol, and Aveeno. A number of the firm’s brands are the global leaders in their respective segments because of their tremendous brand power, despite operating in a fragmented business with fierce competition and constantly shifting customer tastes.

The Self Care division of Kenvue Inc. (NYSE:KVUE) maintained its market share gain in Q3 2024, showing broad-based growth bolstered by 2.5% value realization through carry-over pricing measures. Volume decreased, though, which was somewhat countered by increases in Essential Health. Although demand was still low, Skin Health & Beauty observed early signs of recovery, which affected overall performance. Value realization was increased by pricing changes, while volume weakness had an adverse effect. Despite these obstacles, the firm is nevertheless dedicated to long-term, profitable growth, using its Vue Forward strategy to improve its market position through efficiency measures and brand reinvestments.

Natixis Global Asset Management’s Harris Associates was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 31.46 million shares worth $727.66 million as of Q3.