5 Best Household and Personal Care Stocks To Buy

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

Number of Hedge Fund Holders: 44

The Estée Lauder Companies Inc. (NYSE:EL) manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It is one of the best household stocks to invest in. On May 3, The Estée Lauder Companies Inc. (NYSE:EL) declared a $0.66 per share quarterly dividend, in line with previous. The dividend is payable on June 15, to shareholders of record on May 31. 

On May 4, RBC Capital analyst Nik Modi reiterated an Outperform rating on The Estée Lauder Companies Inc. (NYSE:EL) but lowered the firm’s price target on the shares to $265 from $290. The company’s third-quarter earnings were lower than expected, largely due to slower recovery in travel retail, which was not in line with Estee Lauder and travel retailers’ expectations. Despite this, strong growth was observed across all categories and geographies, suggesting that this setback will likely have a limited impact, the analyst told investors in a research note. 

According to Insider Monkey’s fourth quarter database, 44 hedge funds were bullish on The Estée Lauder Companies Inc. (NYSE:EL), compared to 52 funds in the last quarter. Terry Smith’s Fundsmith LLP is the biggest stakeholder of the company, with 5.6 million shares worth $1.40 billion. 

ClearBridge All Cap Growth Strategy made the following comment about The Estée Lauder Companies Inc. (NYSE:EL) in its Q4 2022 investor letter:

“The Estée Lauder Companies Inc. (NYSE:EL), which manufactures and markets cosmetics, fragrances, skin and hair care products across a number of well-known global brands including Clinique, MAC and Bobbi Brown, adds to our group of secular growers. Estee Lauder is a global leader in the prestige beauty space, which has outgrown the broader home and personal care category since 2010 and has historically been recession resilient. The company has substantial brand and pricing power and is over indexed to the highly profitable prestige skin care category. We believe the company’s most recent earnings report and 2023 guidance update, which was cut significantly due to uncertainty over China’s zero-COVID policy (China and travel retail are key growth drivers), provided an attractive entry point. At this point, we believe the stock has been significantly derisked and could see potential upside from a China recovery.”