12 Best Cosmetics Stocks to Buy for 2025

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7. Sally Beauty Holdings, Inc. (NYSE:SBH)

Number of Hedge Fund Holders: 36

Sally Beauty Holdings, Inc. (NYSE:SBH) is an international specialty retailer specializing in professional beauty supplies. Its operations span two segments: Beauty Systems Group (BSG) and Sally Beauty Supply. The company offers over 7,000 products in the hair care, hair color, hair styling tools, and nails categories. Its proprietary brand portfolio includes Bondbar, Strawberry Leopard, Generic Value Products, and more.

Although the company’s revenue growth is modest, its margin expansion reflects a significant opportunity. Sally Beauty Holdings, Inc. (NYSE:SBH) has significantly improved its operating margin, rising 330 basis points to 10.7%. This shows that the company’s strategic efficiencies and cost-cutting initiatives are supporting profitability. Its focus on improved inventory management, disciplined pricing, and digital transformation is strengthening the company’s financial health.

Sally Beauty Holdings, Inc. (NYSE:SBH) is also well-positioned to improve its profitability in the future by leveraging its e-commerce expansion, strong supply chain, and disciplined capital deployment. Investors are thus bullish on the stock, and its median price target of $8.01 implies an upside of 74.78% from current levels. The company takes the seventh spot on our list of the best cosmetics stocks to invest in for 2025.

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