5 Best Vegan Stocks to Buy Now

3. Olaplex Holdings, Inc. (NASDAQ:OLPX)

Number of Hedge Fund Holders: 18

Coming up next among the best vegan stocks is Olaplex Holdings, Inc. (NASDAQ:OLPX). It creates, manufactures, and sells entirely vegan products for hair care. They offer shampoos, conditioners, and nourishing hair serums that help treat, maintain, and protect hair. These products are used by both professional hair salons and regular consumers. On August 8, Olaplex Holdings, Inc. (NASDAQ:OLPX) announced a Q2 non-GAAP EPS of $0.03 and a revenue of $109.24 million, falling short of estimates by $0.02 and $20.56 million, respectively. However, it remains a popular vegan stock among smart investors. 

According to Insider Monkey’s second quarter database, 18 hedge funds were bullish on Olaplex Holdings, Inc. (NASDAQ:OLPX). This number increased from the last quarter when 15 funds had invested in the stock. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with 5.3 million shares worth $19.78 million.

Polen U.S. Small Company made the following comment about Olaplex Holdings, Inc. (NASDAQ:OLPX) in its Q1 2023 investor letter:

“We exited three positions during the quarter: Duck Creek Technologies, Azenta, and Olaplex Holdings, Inc. (NASDAQ:OLPX). We believe Olaplex highlights our willingness to change our mind when information changes, even with a new position. Olaplex is a highly profitable and uniquely positioned prestige beauty brand focused on science-based hair care. When we first invested in Olaplex in the fourth quarter of last year, it was on the back of the stock re-rating lower as revenue growth decelerated from rapid growth to a more sustainable growth rate. We felt this re-rating represented a significant discount on the stock’s long-term potential. In the short time since we became owners, a tail risk emerged related to a claim that the products cause hair loss and damage. At worst, this presents an existential threat to the business and, in the best-case scenario, makes everything that they are trying to do today a lot harder. No longer comfortable with the significantly widened range of potential outcomes, we eliminated the position as we have investment alternatives of equal or better reward today with meaningfully less risk. While it is unusual for us to exit positions so quickly, sometimes this is necessary. Not only is it important to be open to changing one’s mind quickly as new risks emerge—it is essential to protecting and preserving our clients’ capital.”