Johnson & Johnson (JNJ): What Stocks Would Justin Bieber Buy?

Boyfriend looks good

Justin’s “Boyfriend” was his highest-charting single. This is a tricky one to match. Again, sticking to luxury goods, we could look to beauty products and perfumes and aftershaves in particular. These are handy staples for the luxury brand houses. While the average consumer can’t afford the bag or the coat, they are often happy to get a slice of luxury by dropping $60-$100 for a scent or two. Chanel S.A. is the seller of the #1 perfume in the world, but is privately owned and Christian Dior SA (EPA:CDI) is only listed in Europe. However, Estee Lauder Companies Inc (NYSE:EL), while not a top-end brand, does have the popular Jo Malone brand in its stable. It also has the M-A-C makeup brand, which opened a flagship store on 5th Avenue and is set to open another on the Champs-Elysees.

I ran a piece on Estee Lauder in late February after a strong earnings report pushed the stock to a new 52-week high. The stock is currently sitting just off this high, but is holding its post-earnings bump. Estee Lauder’s luxury brands, which include Jo Malone, Tom Ford and La Mer, have seen sales growth of 20% from last quarter, primarily in the fragrance business, which is by far the best performing segment within the Estee Lauder group (although a smaller portion of overall revenue). Executives were bullish on their recent conference call around all three of their top-tier luxury brands. Jo Malone is a key driver in U.K retail sales along with M-A-C. Its La Mer brand won the prestigious Marie Clair Prix d’Excellence to further boost its credentials. The company recently launched Coach Love for Coach, Inc. (NYSE:COH).

All three stocks introduced here for Bieber fans are sitting near highs but still have some room to grow. Fans could do worse than add these stocks to their watch lists and eventually their portfolios. Jump on the potential opportunity to enjoy some of the riches of this idol!

The article What Stocks Would Justin Bieber Buy? originally appeared on Fool.com is written by Declan Fallon.

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