In this article we discuss the 5 best beauty stocks to invest in. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Hair Care Stocks To Buy Now.
5. Coty Inc. (NYSE:COTY)
Number of Hedge Fund Holders: 25
Coty Inc. (NYSE:COTY) ranks 5th on the 10 best hair care stocks to buy now. The multinational beauty company headquartered in New York distributes skin care, nail care, and hair care through its 77 brands.
In May 2020, Coty Inc. (NYSE:COTY) sold a 60% stake of some of its brands including haircare brands Wella and Clairol to KKR & Co. Inc. (NYSE:KKR) for $4.3 billion. The deal covers the businesses to operate as distinct standalone companies. Shares of Coty Inc. (NYSE:COTY) rose 122$ in the last twelve months.
Raymond James analyst Olivia Tong initiated coverage on Coty Inc. (NYSE:COTY) with a Market Perform rating and no price target, stating that most of the potential near-term recovery has already been discounted into the stock.
The company has a market cap of $6.53 billion. The company’s adjusted EPS in the second quarter of 2021 came in at $017, beating consensus estimates of $0.07. Coty Inc.’s (NYSE:COTY) revenue in the second quarter of 2021 came at $1.42 billion, beating consensus estimates by $10 million.
As of Q1 2021, 25 hedge funds tracked by Insider Monkey have positions in Coty Inc. (NYSE:COTY) worth $262 million.
4. Helen of Troy Limited (NASDAQ:HELE)
Number of Hedge Fund Holders: 29
Helen of Troy Limited (NASDAQ:HELE) ranks 4th on the 10 best hair care stocks to buy now. The consumer and beauty product provider based in Texas distributes consumer products through its leading brands, including its hair care segment Bed Head and Hot Tools Professional.
In 2020, Helen of Troy Limited (NASDAQ:HELE) purchased premium hair care product provider Drybar Products LLC in a $255 in cash million deal. Shares of Helen of Troy Limited (NASDAQ:HELE) rose 14% in the last twelve months.
On January 8th, DA Davidson analyst Linda Bolton Weiser raised Helen of Troy Limited’s (NASDAQ:HELE) price target to $260 from $246 and kept its Buy rating on the stock.
The company has a market cap of $5.51 billion. In the first quarter of 2021, Helen of Troy Limited (NASDAQ:HELE) reported an adjusted EPS of $3.48, beating estimates of $2.62. In the first quarter, the company’s GAAP operating income came in at $57.0 million, an increase from $47.2 million in the same period of 2020.
At the end of the first quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $214 million in Helen of Troy Limited (NASDAQ:HELE).
3. Ulta Beauty, Inc. (NASDAQ:ULTA)
Number of Hedge Fund Holders: 46
Ulta Beauty, Inc. (NASDAQ:ULTA) ranks 3rd on the 10 best hair care stocks to buy. The Illinois-based American beauty company operates over 1,100 beauty stores in over 50 states. The company was founded in 1990 and offers hair care products through notable brands Tresemme, Redken, and Kenra Professional.
To grow Ulta Beauty, Inc.’s (NASDAQ:ULTA) e-commerce, the company purchased online booking tool Spruce and AI startups QM Scientific and GlamSt to fulfill its two-day delivery orders. During the height of the pandemic in 2020, ULTA’s e-commerce sales jumped by 200%. Shares of Ulta Beauty, Inc. (NASDAQ:ULTA) jumped 71% over the last twelve months.
On July 14th, Raymond James analyst Olivia Tong upgraded Ulta Beauty, Inc. (NASDAQ:ULTA) to an Outperform rating with a $395 per share price target. The analyst commented that the beauty category is set to recover post-COVID 19 with users replenishing their collection.
The company has a market cap of $18.98 billion. In the first quarter of 2021, Ulta Beauty, Inc. (NASDAQ:ULTA) reported an EPS of $4.10, beating estimates of $1.93. The company’s revenue in the first quarter was $1.94 billion, beating consensus estimates of $1.64 billion. Ulta Beauty, Inc. (NASDAQ:ULTA) has gained 20% year to date.
There were 46 hedge funds that reported owning stakes in Ulta Beauty, Inc. (NASDAQ:ULTA) at the end of the first quarter. The total value of these stakes at the end of Q1 is $1.43 billion.
2. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 59
The Estée Lauder Companies Inc.(NYSE:EL) ranks 2nd on the list of 10 best hair care stocks to buy now. The New York-based personal care company manufactures and markets skin care, makeup, and hair care to over 150 countries. Estee Lauder Companies, Inc. (NYSE:EL) beauty brands include MAC, Clinique, and Bobbi Brown.
Earlier this year, The Estée Lauder Companies Inc. (NYSE:EL) announced that it had increased its stake in DECIEM Beauty Group to 76%, valued at approximately $1.0 billion. Shares of The Estée Lauder Companies Inc. (NYSE:EL) rose 11% in the last three months.
On July 22nd, Oppenheimer analyst Rupesh Parikh raised the price target of The Estée Lauder Companies Inc. (NYSE:EL) to $355 per share from $330 per share. According to the analyst, a partnership of EL and Target could drive at least 1,000 net stores in total.
The company has a market cap of $118.7 billion and offers a dividend yield of 0.64%. The company’s fiscal third-quarter EPS was $1.62 beating consensus estimates by $0.30. The Estée Lauder Companies Inc. (NYSE:EL) revenue in the fiscal third quarter of 2021 was $3.86 billion, a 16% growth year-over-year.
By the end of the first quarter of 2021, 59 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Estée Lauder Companies Inc. (NYSE:EL), worth roughly $4.10 billion.
Cooper Investors mentioned Estee Lauder Companies, Inc. (NYSE:EL) in its Q4 2020 investor letter:
“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.”
1. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 70
Topping the list of 10 best hair care stocks to buy now is The Procter & Gamble Company (NYSE:PG). The Ohio-based consumer goods corporation operates in over 80 countries with sales in more than 160 countries. The Procter & Gamble Company (NYSE:PG) also offers hair care products through its brands Pantene, Old Spice, and Aussie.
In June, UBS analyst Peter Grom initiated coverage on The Procter & Gamble Company (NYSE:PG) with a Neutral rating and a $138 price target.
The company has a market cap of $352.42 billion and currently offers a dividend yield of 2.42%. In the fiscal third quarter of 2021, The Procter & Gamble Company (NYSE:PG) reported an EPS of $1.26, beating estimates by $0.07. The company’s fiscal third-quarter revenue was $18.11 billion, up 5.2% year-over-year and beating consensus estimates of $17.9 billion. The beauty division growth was mainly due to a 30% increase in SK-II brand sales and organic sales in hair care led by innovations in China.
At the end of the first quarter of 2021, 70 hedge funds in the database of Insider Monkey held stakes worth $8.53 billion in The Procter & Gamble Company (NYSE:PG).
You can also take a peek at 10 Best Consumer Finance Stocks To Buy Now and 10 Best Communication Equipment Stocks To Buy.
