In this article, we discuss the 5 best beauty stocks to buy now. If you want to read our detailed analysis of the beauty industry and its future outlook, go directly to 10 Best Beauty Stocks To Buy Now.
5. Coty Inc. (NYSE:COTY)
Number of Hedge Fund Holders: 30
Coty Inc. (NYSE:COTY) is a New York-based company which offers premium fragrances, skincare, and color cosmetics products in approximately 150 countries and regions around the globe. Calvin Klein, Burberry, Gucci, and Kylie Jenner are some of the most popular brands under the company’s umbrella.
The company reported its Q1 earnings on May 9, and posted earnings per share above estimates by $0.02. Revenue for the quarter was $1.19 billion, beating consensus estimates by $32.4 million and exhibiting a 15.4% growth in comparison to the year-ago quarter.
4. International Flavors & Fragrances Inc (NYSE:IFF)
Number of Hedge Fund Holders: 33
International Flavors & Fragrances Inc (NYSE:IFF) develops fragrance ingredients, natural health ingredients and other products that are used by manufacturers of perfumes, cosmetics, hair and personal care products, as well as processed foods, beverages and pharmaceutical items. It has manufacturing plants in 47 countries around the globe, and is based in New York City.
33 out of the 900+ hedge funds tracked by Insider Monkey were long International Flavors & Fragrances Inc (NYSE:IFF) at the end of March, as compared to 40 hedge funds a quarter earlier. With a stake worth almost $845 million, Sachem Head Capital was the largest shareholder of the company at the close of the first quarter of 2022.
On May 11, Wells Fargo analyst Michael Sison raised the firm’s price target on International Flavors & Fragrances Inc (NYSE:IFF) to $150 from $145 and maintained an ‘Overweight’ rating on the company shares. He noted that the company performed above expectations through a challenging inflationary environment, with robust demand and pricing actions leading to sales growth in the first quarter and potentially the rest of the year.
International Flavors & Fragrances Inc’s (NYSE:IFF) revenue for the first quarter was reported at $3.23 billion, which was an increase of 30.87% in comparison to the year-ago quarter and also beat estimates by $136.6 million. It posted earnings per share for Q1 2022 which were above Street estimates by $0.33.
3. Ulta Beauty, Inc. (NASDAQ:ULTA)
Number of Hedge Fund Holders: 48
Up next on the list of best beauty stocks to buy now is Ulta Beauty, Inc. (NASDAQ:ULTA). It operates a network of more than 1,300 retail stores across the United States, selling beauty, skincare, haircare and personal care products. It also offers salon and styling services through its hair salon business. The company shares have surged 23.87% in the last 12 months, and 10.71% in the last 6 months as of May 27.
Earnings per share came in at $6.30 for Ulta Beauty, Inc. (NASDAQ:ULTA) for the first quarter, outperforming estimates by $1.81. The company pulled in $2.35 billion in revenue for the quarter, beating analysts’ predictions by $222.8 million and highlighting growth of 21% in comparison to the same period over last year.
On May 27, Baird analyst Mark Altschwager kept an ‘Outperform’ rating on Ulta Beauty, Inc. (NASDAQ:ULTA) shares, and raised the price target to $490 from $450. The analyst expressed confidence in the company’s competitive position, and likes its product offering which he views as the least cyclical in his coverage, supporting its attractive risk/reward. Jefferies analyst Stephanie Wissink in May gave Ulta Beauty, Inc. (NASDAQ:ULTA) a ‘Buy’ rating, noting that demand had returned to pre-pandemic levels. She increased the price target to $475 from $400, and sees the company’s cost discipline, rational guidance and tight inventory lowering its risk profile.
2. The Estee Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 46
The Estee Lauder Companies Inc. (NYSE:EL) manufactures and markets a range of beauty products such as makeup, skincare, hair care and fragrances around the globe. Its brands include Estée Lauder, Clinique, Lab Series, and Bobbi Brown, among others.
On May 4, Raymond James analyst Olivia Tong maintained a ‘Strong Buy’ rating on The Estee Lauder Companies Inc. (NYSE:EL) shares, and revised the price target to $320 from $345. She sees temporary blips for the company owing to the Covid lockdowns in China, but believes its long-term fundamentals remain intact within a meaningful long-term growth market.
The investing world was eager on The Estee Lauder Companies Inc. (NYSE:EL) at the close of Q1 2022, where 46 hedge funds held positions in the firm, up from 44 hedge funds in the previous quarter. Terry Smith’s Fundsmith LLP boasted a $1.57 billion stake in The Estee Lauder Companies Inc. (NYSE:EL) at the close of the first quarter, making it the firm’s biggest shareholder.
For the first quarter, The Estee Lauder Companies Inc. (NYSE:EL) disclosed earnings per share of $1.90, exceeding analysts’ expectations by $0.23. However, quarterly revenue fell below estimates by $73.6 million, coming in at $4.25 billion.
1. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 72
The Procter & Gamble Company (NYSE:PG) is a consumer goods conglomerate founded in 1837. It operates through its segments: Beauty, Grooming, Health Care, Fabric and Home Care; and Baby, Feminine & Family Care. The company is a dividend giant, boasting 65 consecutive years of payout increases. Its yield stands at 2.46% as of May 31.
Barclays analyst Lauren Lieberman on April 22 kept an ‘Overweight’ rating on The Procter & Gamble Company (NYSE:PG) shares, and increased the price target to $176 from $167. The analyst expects the company’s results to “set an extremely high bar” for the larger industry and ultimately serve to reaffirm its “widened fundamental performance gap.”
Investors realize the stability and upward potential offered by The Procter & Gamble Company (NYSE:PG), and loaded up on the stock at the close of the first quarter, where 72 hedge funds owned stakes in the company. This is in contrast to 67 hedge funds in the preceding quarter. GQG Partners increased its stake in The Procter & Gamble Company (NYSE:PG) by 32% over the first quarter, standing at 9.91 million shares priced at $1.51 billion. This made it the firm’s most prominent shareholder.
The Procter & Gamble Company’s (NYSE:PG) revenue for the first quarter was recorded at $19.4 billion, beating consensus estimates by $687.8 million. EPS of $1.33 was also above Street forecasts by $0.04.
You can also take a look at 12 Best Telemedicine Stocks To Buy and 12 Most Influencial Chinese Entrepreneurs.
