12 Best Beauty Stocks to Buy According to Hedge Funds

2. Colgate-Palmolive Company (NYSE:CL)

Number of Hedge Fund Holders: 54

Since its founding in 1806, the Colgate-Palmolive Company (NYSE:CL), has grown to become a significant player in the personal care and home industries. The company manufactures shampoos, shower gels, deodorants, and other homecare products that are delivered to more than 200 countries in addition to its renowned dental care line, which accounts for more than 40% of its total sales. About 70% of its entire revenue comes from sales abroad, of which 45% comes from developing countries.

For the first time, Colgate-Palmolive Company (NYSE:CL) surpassed $20 billion in net sales in 2024, and organic sales growth was 7.4% across all product categories and divisions. The company’s EPS increased by double digits. The firm expanded its gross profit margins while retaining its global leadership in toothpaste (41.4% market share) and manual toothbrushes (32.2% market share). Operating cash flow increased by 10% YoY to $4.1 billion, used to pay out $3.4 billion in dividends and buybacks for shareholders. Following a 19% increase in 2023, the company also raised advertising spending by 15%, highlighting the strength and creativity of its brand.

Despite currency headwinds and the anticipated exit from private-label pet nutrition, Colgate-Palmolive Company (NYSE:CL) is still poised to sustain EPS growth in 2025 due to its high profit margins, strict cost control, and ongoing developments in digital and analytics.

Rajiv Jain’s GQG Partners was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 9.34 million shares worth $969.42 million as of Q3.