5 Best Beauty Stocks To Buy Now

In this article, we discuss 5 best beauty stocks to buy now. If you want to see more stocks in this selection, check out 12 Best Beauty Stocks To Buy Now. 

5. Givaudan SA (OTC:GVDNY)

Number of Hedge Fund Holders: N/A

Givaudan SA (OTC:GVDNY) is a Switzerland-based company that manufactures and supplies fragrance, beauty, taste, and wellbeing products to the consumer goods industry. It is one of the premier beauty stocks to buy now. On July 21, the company posted a 1H GAAP EPS of CHF47.74 and a revenue of CHF3.65 billion, up 8.3% year-over-year. 

On October 13, investment advisory Berenberg maintained a Buy recommendation on Givaudan SA (OTC:GVDNY) but lowered the firm’s price target on the shares to CHF 3,600 from CHF 3,800. Analyst James Targett issued the ratings update. 

4. The Estée Lauder Companies Inc. (NYSE:EL)

Number of Hedge Fund Holders: 46

The Estée Lauder Companies Inc. (NYSE:EL) is a New York-based company that manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers its products under the Estée Lauder, Clinique, M·A·C, Bobbi Brown, La Mer, Jo Malone London, Smashbox, GLAMGLOW, Kilian Paris, Too Faced, Dr. Jart+, DECIEM, and The Ordinary brands, among others. 

On November 2, The Estée Lauder Companies Inc. (NYSE:EL) declared a $0.66 per share quarterly dividend, a 10% increase from its prior dividend of $0.60. The dividend is payable on December 15, to shareholders of the company as of November 30. 

Wells Fargo analyst Chris Carey on November 8 raised the price target on The Estée Lauder Companies Inc. (NYSE:EL) to $225 from $215 and maintained an Overweight rating on the shares. Cosmetics imports data from October had the best year-over-year pattern since July, although it was still negative. Duty free imports were positive year-over-year for the first time since April, the analyst noted. The analyst said that the data indicating slight sequential improvement is “intriguing” in the context of The Estée Lauder Companies Inc. (NYSE:EL)’s Q3 results, future guidance, and the overall narrative around reopening.

According to Insider Monkey’s data, 46 hedge funds were bullish on The Estée Lauder Companies Inc. (NYSE:EL) at the end of Q2 2022, and Terry Smith’s Fundsmith LLP is the biggest position holder in the company, with approximately 6 million shares worth $1.5 billion. 

Here is what Harding Loevner Global Equity Fund has to say about The Estée Lauder Companies Inc. (NYSE:EL) in its Q3 2021 investor letter:

“We sold cosmetic producer Estée Lauder, which we bought last March. At the time, the market reflected a dire outlook for retail demand, especially tourist-related; however, we found its Chinese business attractive and admired its agility across social media and other digital channels. As the stock has appreciated, the resulting valuation now leaves no room for error, such as a potential shift of Chinese consumers’ tastes away from US brands.”

3. Bath & Body Works, Inc. (NYSE:BBWI)

Number of Hedge Fund Holders: 47

Bath & Body Works, Inc. (NYSE:BBWI) is one of the best beauty stocks to watch. It operates as a specialty retailer of home fragrance, body care, soaps, and sanitizer products. On November 4, Bath & Body Works, Inc. (NYSE:BBWI) declared a quarterly dividend of $0.20 per share, in line with previous. The dividend is payable on December 2, to shareholders of record on November 18. 

Jefferies analyst Ashley Helgans on October 21 assumed coverage of Bath & Body Works, Inc. (NYSE:BBWI) with a Buy rating but lowered the price target on the shares to $43 from $47. 

According to Insider Monkey’s data, 47 hedge funds were bullish on Bath & Body Works, Inc. (NYSE:BBWI) at the end of the second quarter of 2022, compared to 57 funds in the last quarter. 

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

Number of Hedge Fund Holders: 52

Ulta Beauty, Inc. (NASDAQ:ULTA) is an Illinois-based retailer of beauty products in the United States. The company offers cosmetics, fragrances, skincare and haircare products, bath and body products, and salon styling tools. On October 21, Jefferies analyst Ashley Helgans took over coverage of Ulta Beauty, Inc. (NASDAQ:ULTA) and kept a Buy rating on the shares with an unchanged price target of $485, citing the solid demand in the beauty sector. 

Among the hedge funds tracked by Insider Monkey, 52 funds were bullish on Ulta Beauty, Inc. (NASDAQ:ULTA) at the end of the second quarter of 2022, compared to 48 funds in the prior quarter. The combined stakes held by elite funds increased to $1.7 billion in Q2 2022 from $1.1 billion in the first quarter. Jim Simons’ Renaissance Technologies is a prominent position holder in the company, with 701,400 shares valued at $270.3 million. 

Here is what ClearBridge Large Cap Growth ESG Strategy has to say about Ulta Beauty, Inc. (NASDAQ:ULTA) in its Q2 2022 investor letter:

“After seeding the portfolio with select growth companies in the second half of 2020 and 2021, we have redirected our focus over the last several quarters to risk management. Moves during the second quarter in pursuit of greater stability included reducing consumer discretionary exposure with the sale of omnichannel cosmetics retailer Ulta Beauty (NASDAQ:ULTA).

We exited Ulta as our thesis has largely played out in terms of a post-COVID 19 earnings recovery. Ulta has steadily gained share over the last several years and its partnership with Target (TGT) represents a new avenue to gain customer loyalty. That being said, we are wary about the resilience of the consumer and the impact of labor cost inflation, which could crimp Ulta’s margin expansion in coming quarters. As with recent activity, the sale further reduces our consumer discretionary exposure and helps manage portfolio risk through an ongoing period of volatility.”

1. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 71

The Procter & Gamble Company (NYSE:PG) is an American multinational branded consumer packaged goods company that operates through five segments – Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. The Procter & Gamble Company (NYSE:PG) is one of the best beauty stocks to invest in. On October 11, the company declared a $0.9133 per share quarterly dividend, in line with previous. The dividend is payable on November 15, to shareholders of record on October 21. The Procter & Gamble Company (NYSE:PG) also posted market-beating third quarter results. 

On October 20, Deutsche Bank analyst Steve Powers raised the price target on The Procter & Gamble Company (NYSE:PG) to $156 from $155 and kept a Buy rating on the shares following the fiscal Q1 results.

According to Insider Monkey’s Q2 data, 71 hedge funds were bullish on The Procter & Gamble Company (NYSE:PG), compared to 72 funds in the preceding quarter. Ray Dalio’s Bridgewater Associates is the biggest stakeholder of the company, with 6.7 million shares worth $970 million.

You can also take a look at 12 Best Consumer Discretionary Stocks To Buy and 10 Best Technology Dividend Stocks To Buy. 

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