5 Best Hair Care Stocks To Buy Now

In this article, we discuss 5 best hair care stocks to buy now. If you want to see more stocks in this selection, check out 11 Best Hair Care Stocks To Buy Now. 

5. Coty Inc. (NYSE:COTY)

Number of Hedge Fund Holders: 30

Coty Inc. (NYSE:COTY) is a New York-based manufactures, markets, and sells beauty products worldwide. It operates through Prestige and Consumer Beauty segments. The company provides fragrance, color cosmetics, skin care, hair care, and body care products. On December 12, Coty Inc. (NYSE:COTY) reported that it will start hedging a planned stock buyback program of approximately $200 million in CY25 as part of its deleveraging plan. The program adds to the company’s previous $200 million hedged buyback in CY24. Coty Inc. (NYSE:COTY) is one of the best hair care stocks to buy. 

On December 6, Deutsche Bank analyst Steve Powers raised the price target on Coty Inc. (NYSE:COTY) to $11 from $10 and maintained a Buy rating on the shares. Although data points are “choppy,” there have been a number of positive developments for the markets over the past several weeks. 

According to Insider Monkey’s data, 30 hedge funds were bullish on Coty Inc. (NYSE:COTY) at the end of September 2022, compared to 29 funds in the last quarter. Israel Englander’s Millennium Management is the biggest position holder in the company, with 8.8 million shares worth $55.5 million. 

Meridian Funds made the following comment about Coty Inc. (NYSE:COTY) in its Q3 2022 investor letter:

“Similarly, Coty Inc. (NYSE:COTY) benefited from the market’s rising appetite for more defensive names during the quarter. The beauty products Coty manufactures and distributes saw steady market share gains, especially as core customers expanded their work and leisure activities outside of the home. The company also operates a broad distribution network and holds a deep intellectual property portfolio across key categories within the cosmetic and fragrance industries. Additionally, Coty is building momentum around a business transformation that’s in the early innings but has already seen success in e-commerce and direct-to-consumer gains, as well as a rising presence in China.”

4. The Estée Lauder Companies Inc. (NYSE:EL)

Number of Hedge Fund Holders: 52

The Estée Lauder Companies Inc. (NYSE:EL) is a New York-based company that manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. On November 15, The Estée Lauder Companies Inc. (NYSE:EL) announced that it has agreed to acquire the Tom Ford enterprise in a $2.8 billion deal. It is one of the elite hair care stocks to invest in. 

JPMorgan analyst Andrea Teixeira on December 13 raised the firm’s price target on The Estée Lauder Companies Inc. (NYSE:EL) to $274 from $220 and kept an Overweight rating on the shares. The analyst expects a “bifurcated” year for staples in 2023 and thinks selective household, personal care, and beverage stocks “can continue to work next year.”

According to Insider Monkey’s third quarter database, The Estée Lauder Companies Inc. (NYSE:EL) was part of 52 hedge fund portfolios, compared to 46 in the prior quarter. Terry Smith’s Fundsmith LLP is the biggest position holder in the company, with approximately 6 million shares worth $1.28 billion. 

Here is what Harding Loevner Global Equity Fund has to say about The Estée Lauder Companies Inc. (NYSE:EL) in its Q3 2021 investor letter:

“We sold cosmetic producer Estée Lauder, which we bought last March. At the time, the market reflected a dire outlook for retail demand, especially tourist-related; however, we found its Chinese business attractive and admired its agility across social media and other digital channels. As the stock has appreciated, the resulting valuation now leaves no room for error, such as a potential shift of Chinese consumers’ tastes away from US brands.”

3. Ulta Beauty, Inc. (NASDAQ:ULTA)

Number of Hedge Fund Holders: 54

Ulta Beauty, Inc. (NASDAQ:ULTA) is an Illinois-based retailer of beauty products in the United States. The company offers cosmetics, fragrances, skincare and haircare products, bath and body products, and salon styling tools. It is one of the best hair care stocks to monitor. For the third quarter, Ulta Beauty, Inc. (NASDAQ:ULTA) reported $5.34 in earnings per share alongside $2.3 billion in revenue, topping earnings expectations and raising sales forecasts. 

On December 5, Barclays analyst Adrienne Yih raised the firm’s price target on Ulta Beauty, Inc. (NASDAQ:ULTA) to $548 from $511 and maintained an Overweight rating on the shares. The Q3 beat showed the company’s “resilience,” the analyst told investors in a research note.

According to Insider Monkey’s third quarter database, 54 hedge funds were bullish on Ulta Beauty, Inc. (NASDAQ:ULTA), compared to 52 funds in the last quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest stakeholder of the company, with 699,112 shares worth $280.5 million. 

Here is what ClearBridge Large Cap Growth ESG Strategy has to say about Ulta Beauty, Inc. (NASDAQ:ULTA) in its Q2 2022 investor letter:

“After seeding the portfolio with select growth companies in the second half of 2020 and 2021, we have redirected our focus over the last several quarters to risk management. Moves during the second quarter in pursuit of greater stability included reducing consumer discretionary exposure with the sale of omnichannel cosmetics retailer Ulta Beauty (NASDAQ:ULTA).

We exited Ulta as our thesis has largely played out in terms of a post-COVID 19 earnings recovery. Ulta has steadily gained share over the last several years and its partnership with Target (TGT) represents a new avenue to gain customer loyalty. That being said, we are wary about the resilience of the consumer and the impact of labor cost inflation, which could crimp Ulta’s margin expansion in coming quarters. As with recent activity, the sale further reduces our consumer discretionary exposure and helps manage portfolio risk through an ongoing period of volatility.”

2. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 68

Walmart Inc. (NYSE:WMT) is an American retailer that sells an assortment of beauty products online and in-store, including multiple hair care brands. On December 9, the fintech startup backed by Walmart Inc. (NYSE:WMT) announced that it is planning to offer Buy Now, Pay Later loans as soon as next year. The company is set to pay a $0.56 per share quarterly dividend to shareholders on January 3, 2023. 

On December 19, Credit Suisse analyst Karen Short assumed coverage of Walmart Inc. (NYSE:WMT) with an Outperform rating with a price target of $170, up from $160. Walmart Inc. (NYSE:WMT) has been gaining “meaningful” market share since early 2021 and she views it as “a well-positioned defensive name in an uncertain macro backdrop,” the analyst told investors. 

According to Insider Monkey’s data, 68 hedge funds were bullish on Walmart Inc. (NYSE:WMT) at the end of Q3 2022, compared to 67 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading position holder in the company, with 8.12 million shares worth $1.05 billion. 

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:

“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart Inc. (NYSE:WMT) and Costco have been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including a number of entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”

1. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 69

The Procter & Gamble Company (NYSE:PG) provides branded consumer packaged goods worldwide, operating through five segments – Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. The company offers conditioners, shampoos, styling aids, and treatments under the Head & Shoulders, Herbal Essences, Pantene, and Rejoice brands. It is one of the best hair care stocks to buy now. The Procter & Gamble Company (NYSE:PG) reported that organic sales rose 7% in FQ1 off strong performances in the health care, fabric & home care, and baby, feminine & family care segments. 

Deutsche Bank analyst Steve Powers on December 6 raised the firm’s price target on The Procter & Gamble Company (NYSE:PG) to $162 from $156 and maintained a Buy rating on the shares.

According to Insider Monkey’s data, 69 hedge funds were bullish on The Procter & Gamble Company (NYSE:PG) at the end of Q3 2022, compared to 71 funds in the last quarter. Ray Dalio’s Bridgewater Associates held the largest stake in the company, comprising 6.6 million shares worth $835.2 million.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 12 Countries that Produce the Best Cosmetics and 12 Best Performing Energy Stocks in 2022.