5 Best Household and Personal Care Stocks To Buy

In this article, we discuss 5 best household and personal care stocks to buy. If you want to see more stocks in this selection, check out 12 Best Household and Personal Care Stocks To Buy. 

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

Number of Hedge Fund Holders: 43

Ulta Beauty, Inc. (NASDAQ:ULTA) is a specialty retail company that operates stores in the United States selling cosmetics, fragrance, haircare, skincare products, and related accessories and services. On March 9, Ulta Beauty, Inc. (NASDAQ:ULTA) reported a Q4 GAAP EPS of $6.68 and a revenue of $3.23 billion, outperforming Wall Street estimates by $0.99 and $240 million, respectively. It is one of the best household stocks to invest in. 

On May 1, Loop Capital raised the price target on Ulta Beauty, Inc. (NASDAQ:ULTA) to $550 from $520, while maintaining a Hold rating on the shares. The company is now slightly more optimistic about Ulta Beauty, Inc. (NASDAQ:ULTA) after meeting with senior management, especially given the growth of the beauty product industry and the company’s expanding luxury product range and Target shop-in-shops. However, at 21.5 times expected FY23 earnings, the firm noted that the upside potential and downside risk appear to be fairly balanced at current levels.

According to Insider Monkey’s fourth quarter database, 43 hedge funds were bullish on Ulta Beauty, Inc. (NASDAQ:ULTA), compared to 54 funds in the prior quarter. D E Shaw is a prominent stakeholder of the company, with 435,243 shares worth $204 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.”