5 Best Beauty Stocks to Invest In

2. International Flavors & Fragrances Inc. (NYSE: IFF) 

Market Capitalization: $36.9 billion
Number of Hedge Fund Holders: 55 

International Flavors & Fragrances Inc. (NYSE: IFF) is an American corporation that manufactures and sells natural ingredients for flavors, scents, and beauty products. The company has operations in over 44 countries. International Flavors & Fragrances Inc. (NYSE: IFF) is the parent company of some of the famous brands, including Frutarom, Tastepoint Inc, Danisco BV, etc. 

In Q1 2021, International Flavors & Fragrances Inc. (NYSE: IFF) generated a revenue of over $2.5 billion, up from $1.3 billion during the same period last year, showing 83% growth. The EPS was recorded at $1.60, beating the market estimate of $1.53. In Q1, the personal care and fragrance sector made $426 million and $569 million, respectively. The IFF stock hit its all-time low in April 2020 due to the global market crash but has bounced back, gaining more than 41% year to date. 

The Insider Monkey database shows that hedge funds are getting bullish on  International Flavors & Fragrances Inc. (NYSE: IFF), as 55 funds have stakes in the company, up from 33 in the previous quarter. 

Rhizome Partners, an investment management firm, has released its Q1 2021 investor letter and mentioned International Flavors & Fragrances Inc. (NYSE: IFF) and other stocks. Here is what the firm has to say: 

“We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as  IFF. We do understand the market’s rationale. IFF’s products account for a small percentage of the customers’ cost while playing critical roles in the products’ performance. With some operating leverage, the company can probably grow FCF at 4-6% a year. This brings the total return close to the long-term return of the S&P 500 index of 10%. Through trial and error, we have come to appreciate how scale, higher market share, route densities, switching costs, and collaborative relationships amongst major industry players can contribute to sustained high returns on invested capital.”