13 Cheap Stocks to Buy For the Next 5 Years

Page 4 of 12

9. Coty Inc. (NYSE:COTY)

Forward P/E Ratio as of October 7: 8.95

EPS Forward Long Term Growth (3-5 Year CAGR): 33.44%

Number of Hedge Fund Holders: 33

Coty Inc. (NYSE:COTY) is one of the cheap stocks to buy for the next 5 years. On September 30, Coty announced a plan to strengthen its position in the fragrance market by closely integrating its Prestige Beauty and Mass Fragrance businesses and creating a “Fragrance and Scenting Powerhouse.” Fragrances and scenting brands already account for 69% of Coty’s sales.

The company now intends to fully use its scale across R&D, consumer insights, manufacturing, and distribution to capture growth across all price points, ranging from $5 to $500, while also capitalizing on the new $7 billion mist market. Simultaneously, Coty initiated a review of its Consumer Beauty business to fully unleash its potential.

The review will focus on the mass color cosmetics business, which generates $1.2 billion in revenue. It will assess a full range of alternatives, including partnerships, divestitures, spin-offs, and other potential strategic actions, to maximize long-term value and strengthen the balance sheet. Coty has retained Citi to advise on this review.

Coty Inc. (NYSE:COTY) manufactures, markets, distributes, and sells branded beauty products worldwide. It operates through two segments: the Prestige and Consumer Beauty.

Page 4 of 12