Analysts are Bearish on These 5 Consumer Stocks as Recession Begins

3. Sally Beauty Holdings, Inc. (NYSE:SBH)

Number of Hedge Fund Holders: 17

Sally Beauty Holdings, Inc. (NYSE:SBH) is an American retailer and distributor of professional beauty supplies. The stock has dropped about 35% year to date as of July 5. Raymond James analyst Olivia Tong downgraded Sally Beauty Holdings, Inc. (NYSE:SBH) on June 29 to Underperform from Market Perform without a price target, informing investors that the company has the greatest exposure to the low-income clientele in her beauty, personal care, and household products coverage. She forecasts increased risk of deteriorating sales and earnings as Sally Beauty Holdings, Inc. (NYSE:SBH)’s primary consumers start to hold back on spending to offset the effect of inflation in gas and groceries, the analyst added. On June 16, Morgan Stanley analyst Simeon Gutman also downgraded Sally Beauty Holdings, Inc. (NYSE:SBH) to Underweight from Equal Weight with a price target of $12, down from $19. 

Among the hedge funds tracked by Insider Monkey, 17 funds were long Sally Beauty Holdings, Inc. (NYSE:SBH) at the end of Q1 2022, down from 19 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is the largest shareholder of the company, with 3.6 million shares worth $56.50 million.