5 Best Beauty Stocks to Invest In

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1. The Estée Lauder Companies Inc. (NYSE: EL

Market Capitalization: $110.7 billion
Number of Hedge Fund Holders: 59 

The Estée Lauder Companies Inc. (NYSE: EL) tops our list of the best beauty stocks to invest in. It is an American beauty company that manufactures skincare, haircare, and makeup products. The company also sells and manufactures fragrances and has operations in over 150 countries. The Estée Lauder Companies Inc. (NYSE: EL) is a parent company of some really popular brands, including Clinique, Bobby Brown Cosmetics, and La Mer. 

In Q3 FY21, The Estée Lauder Companies Inc. (NYSE: EL) generated a revenue of $3.86 billion, showing a 16% growth year-over-year. The earnings per share for the quarter beat the market estimate of $1.32 and stood at $1.62. The skincare sector accounted for nearly $2.2 billion of the whole revenue and makeup generated sales worth $1.08 billion. The EL stock has gained more than 62% in the past year and 19.8% year to date. UBS Group has listed The Estée Lauder Companies Inc. (NYSE: EL) as a stock with strong pricing power during inflation. The company is also added to JPMorgan’s Analyst Focus List, projecting a profitable year. 

Earlier in May, The Estée Lauder Companies Inc. (NYSE: EL) announced an increase in its ownership in DECIEM Beauty Group from 29% to 76%, worth over $1.0 billion. As of Q1 2021, we see that hedge funds are turning bullish on The Estée Lauder Companies Inc. (NYSE: EL) as 59 funds have a stake in the company, compared with 51 in the previous quarter. 

Cooper Investments released its Q4 2020 investor letter and mentioned The Estée Lauder Companies Inc. (NYSE: EL) in it. Here is what the investment management firm has to say: 

“Estee Lauder was sold because the business is experiencing a very significant share price appreciation in a short period. We bought this great company earlier in 2020, however Value Latencies appear exhausted – to highlight this point Estee Lauder now trades on 45x Free Cash Flow.”

You can also take a peek at 10 Best Consumer Finance Stocks To Buy Now and 10 Best Communication Equipment Stocks To Buy.

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