12 Best Hair Care Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 40

Ulta Beauty, Inc. (NASDAQ:ULTA) is a beauty retailer that offers merchandise in various categories, including hair care, skincare, cosmetics, hair styling, and more. It also offers several beauty services in its stores, 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.”

Ulta Beauty, Inc. (NASDAQ:ULTA) operates more than 1,437 retail stores across 50 US states as of the end of fiscal Q3 2024. The company’s rick-and-mortar offerings and digital presence are both a significant part 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.

The company’s loyalty program continually pulls consumers to its website and app, which has over 44 million members. A significant portion of Ulta Beauty, Inc.’s (NASDAQ:ULTA) sales come from its loyalty membership program, which rose another 5% year-over-year in fiscal Q3 2024. Management hopes to report net sales of more than $11 billion for fiscal year 2024 and an operating margin of around 13%. The company has a resilient market share and strong operating model, ranking it fourth on our list of the 12 best hair care stocks to buy.

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