10 Best Performing Affordable Stocks Under $40

​4. Sally Beauty Holdings, Inc. (NYSE:SBH)

Price: $15.37

Forward P/E Ratio: 7.46

6-month Performance: 53.70%

Number of Hedge Fund Holders: 29

​Sally Beauty Holdings, Inc. (NYSE:SBH) is one of the Best Performing Affordable Stocks Under $40. Sally Beauty Holdings, Inc. (NYSE:SBH) has gained more than 53% during the past 6-months and Wall Street maintains a positive stance on the stock ahead of its fiscal Q1 2026 earnings expected to be released on January 29, 2026.

On December 10, Oliver Chen from TD Cowen maintained a Buy rating on the stock with a $17 price target. Earlier, on December 5, Canaccord Genuity analyst Susan Anderson also maintained a Buy rating on the stock without disclosing any price targets. Analysts from Canaccord Genuity noted that they like Sally Beauty Holdings, Inc.’s (NYSE:SBH) strategic initiatives and market position. The firm noted that the company’s Sally Ignited initiative aims at modernizing and refreshing the brand through remodeled stores and a curated product selection. The firm noted that the initiative has shown early signs of success and is expected to expand significantly in the coming years.

​Moreover, the firm also likes the company’s investment in its digital capabilities. The firm elaborated that the Licensed Colorist on Demand tool is one of the factors driving customer engagement for the company.

Looking ahead, Wall Street expects Sally Beauty Holdings, Inc. (NYSE:SBH) to deliver $939.63 million in revenue along with a GAAP EPS of $0.46. Management during its latest earnings release noted that the fiscal Q1 2026 net sales are expected in the range of $935 million to $945 million, with adjusted EPS in the range of $0.43 to $0.47.

​Sally Beauty Holdings, Inc. (NYSE:SBH) is an international specialty retailer specializing in professional beauty supplies. Its operations span two segments: Beauty Systems Group (BSG) and Sally Beauty Supply.