Is Coty a Fundamentally Strong Company?

ClearBridge Investments, an investment management firm, published its “Mid Cap Strategy” fourth quarter 2022 investor letter. A copy of which can be downloaded here. During the fourth quarter, the strategy underperformed the Russell Midcap Index. On an absolute basis, the strategy gained in 10 of the 11 sectors it invested in during the quarter. The consumer staples, industrials, and financial sectors were the leading contributors while the healthcare sector trailed the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

ClearBridge Mid Cap Strategy highlighted stocks like Coty Inc. (NYSE:COTY) in the fourth quarter 2022 investor letter. Headquartered in New York, New York, Coty Inc. (NYSE:COTY) engages in the business of beauty products. On March 14, 2023, Coty Inc. (NYSE:COTY) stock closed at $10.98 per share. One-month return of Coty Inc. (NYSE:COTY) was -3.60%, and its shares gained 22.96% of their value over the last 52 weeks. Coty Inc. (NYSE:COTY) has a market capitalization of $9.362 billion.

ClearBridge Mid Cap Strategy made the following comment about Coty Inc. (NYSE:COTY) in its Q4 2022 investor letter:

Coty Inc. (NYSE:COTY), a global beauty company made up of prestige fragrance and cosmetic businesses, also generated positive performance. Despite concerns of slowing consumer demand, the company continues to execute and exceed expectations through margin improvement, resilient Chinese demand and growing market share within mass market cosmetics in the U.S. We view Coty as exceptionally undervalued due to its historically high leverage but believe continued margin improvement and strong execution will improve its balance sheet and attractiveness to fundamentals-focused investors.”

Coty Inc. (NYSE:COTY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Coty Inc. (NYSE:COTY) at the end of the fourth quarter which was 30 in the previous quarter.

We discussed Coty Inc. (NYSE:COTY) in another article and shared the list of best hair care stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.