12 Best Hair Care Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 28

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.

Sally Beauty Holdings, Inc. (NYSE:SBH) reported net sales worth $3.7 billion in fiscal year 2024, along with a gross margin of 51%. Fiscal Q4 2024 showed a 1.5% growth in net sales, reaching $935 million. The company also attained four consecutive quarters of positive comp sales in BSG and two in Sally Beauty. This growth was attributed to Sally Beauty Holdings, Inc.’s (NYSE:SBH) product innovation, performance marketing, and the growth of digital marketplaces on Instacart, DoorDash, Amazon, and Walmart.

The company also managed to bring its net debt leverage to 2x through senior note refinancing, ABL repayment, and $60 million in share repurchases. These positive factors lend Sally Beauty Holdings, Inc. (NYSE:SBH) a top spot as one of the best hair care stocks.

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