12 Best Cosmetics Stocks to Buy for 2025

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3. Ulta Beauty, Inc. (NASDAQ:ULTA)

Number of Hedge Fund Holders: 47

Ulta Beauty, Inc. (NASDAQ:ULTA) is a beauty retailer that offers merchandise in various categories, including hair care, skincare, cosmetics, hair styling, and more. Its stores also offer several beauty services, focusing on hair, makeup, skin, and brow. The Ulta Beauty store prototype includes an open salon area on the salon floor. It offers its customers a new way to shop by bringing together “All Things Beauty, All in One Place.”

The company’s brick-and-mortar offerings and digital presence are both significant parts of its strategic standing. It sells hundreds of beauty brands in its stores, provides curbside pickups and delivery services, and also offers shop-in-shop partnerships, such as its partnership with Target.

In a report released on April 8, Simeon Gutman from Morgan Stanley maintained a Buy rating on Ulta Beauty, Inc. (NASDAQ:ULTA) and set a price target of $460.00. The analyst is bullish on the company due to its growth potential and strong market position. It is focused on the US market, and is exhibiting resilience in the beauty category, which positions it to deal with economic uncertainties.

The analyst also told investors that Ulta Beauty, Inc.’s (NASDAQ:ULTA) sourcing strategy has limited exposure to tariffs and is supported by a strong domestic supply chain, which further supports its position amid global trade tensions. The company also has strategic initiatives to drive sales growth and support its brands, including the introduction of innovative products and expansion into personalized and wellness offerings. Ulta Beauty, Inc. (NASDAQ:ULTA) has no debt on its balance sheet, ranking it third on our list of the best cosmetics stocks to buy now and making it a compelling investment.

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