7 Best Beauty Stocks to Buy Right Now

5. Coty Inc. (NYSE:COTY)

Number of Hedge Fund Holders: 30    

Analysts’ Upside Potential as of January 9: 45.19%   

Coty Inc. (NYSE:COTY) is among the Best Beauty Stocks.

On December 19, 2025, Reuters reported that Coty Inc. (NYSE:COTY) had sold the remaining 25.8% of the hair care business Wella to KKR for $750 million. The corporation retains 45% of the proceeds from any future sale or IPO, after KKR’s preferred return is satisfied. The majority of the upfront funds will be used by the business to pay off debt. The transaction concludes a portfolio streamlining program that began in 2020. Earlier, the company began a strategic evaluation of its beauty division, which could result in sales of brands including CoverGirl and Rimmel.

Following the announcement of CEO Sue Nabi’s resignation, Evercore ISI downgraded Coty Inc. (NYSE:COTY) from Outperform to In Line with a $7 price target, as reported by TheFly on December 23, 2025. As stated by analyst Robert Ottenstein, the corporation’s investment thesis relied heavily on Nabi. Evercore claimed that despite the shares’ undervaluation, it is currently unable to see the timing and triggers for a possible value unlock. The firm forecasts that outperformance is unlikely and anticipates that the stock will continue to be cheap.

Coty Inc. (NYSE:COTY) was downgraded by Grupo Santander from Outperform to Neutral with a price target of $3.50. The CEO replacement may prolong the company’s “transition phase,” according to analyst Mariano Szachtman. Santander noted that one of the main reasons for the downgrade was the change in leadership. The firm also observed Evercore ISI downgraded Coty Inc. (NYSE:COTY) in response to the same news as mentioned above in detail.

Coty Inc. (NYSE:COTY) is a globally recognized beauty company that derives 65% of its revenue from premium beauty goods (mainly fragrances) and 35% from mass makeup, skin care, and fragrances.