12 Best Hair Care Stocks to Buy According to Hedge Funds

10. Unilever PLC (NYSE:UL)

Number of Hedge Fund Holders: 22

Unilever PLC (NYSE:UL) is a fast-moving consumer goods (FMCG) company that operates through five segments: Personal Care, Nutrition, Beauty and Well-Being, Home Care, and Ice Cream. The Beauty and Well-Being segment sells hair care products, including conditioner, shampoo, styling products, and more. Unilever PLC (NYSE:UL) offers over 400 brands worldwide.

Unilever PLC (NYSE:UL) saw underlying sales growth of 4.5% in fiscal Q3 2024, with volume growth rising to 3.6%. All of its business segments achieved positive volume growth in the quarter, with Beauty & Well-being up by 6.7% in sales growth, Personal Care by 4.4%, and Ice Cream by 9.8%, primarily due to operational improvements and strong demand. Unilever PLC (NYSE:UL) also reported a strong position in its cash segment. Its free cash flow for the period came in at €2.2 billion. The company ended the first half of fiscal 2024 with €4.97 billion in cash and cash equivalents, compared with €4.1 billion at the end of December 2023.

The company’s productivity program is thus on track, and so is the separation of its Ice Cream business. The separation activity is expected to be completed by 2025 end and is anticipated to result in a more focused Unilever PLC (NYSE:UL) with a concentrated portfolio. The company ranks tenth on our list of the 12 best hair care stocks to buy according to hedge funds. On February 5, Callum Elliott from Bernstein maintained a Buy rating on Unilever PLC (NYSE:UL) with a price target of £52.00.

Hotchkis & Wiley Funds highlighted Unilever PLC’s (NYSE:UL) strong performance in its Q3 2024 investor letter. Here is what the firm had to say:

“Unilever PLC (NYSE:UL) is one of the world’s leading suppliers of consumer goods in the food, home care, and personal care categories, maintaining #1 or #2 market share over 75% of its business. With a new CEO and the involvement of an activist investor (Trian), Unilever is focused on execution and consistency, expecting low to mid-single digit volume-driven top line growth over the medium term, profit growth ahead of sales growth due to operating leverage and mix, and consistent return of cash to shareholders. Additionally, the company has announced plans to separate the Ice Cream business (13% of 2023 sales), which is expected to be completed by the end of 2025 and increase organic sales growth to 4-6% annually. Over the last quarter, the stock price reached a five-year high, as the company has continued to execute the plans laid out above. Unilever has not yet released their official third-quarter results but has reiterated their confidence in achieving 3-5% organic sales growth for the full year, with the majority of this growth being driven by volume.”