Why Coty Inc. (COTY) Surged On Thursday

We recently published a list of While Wall Street Naps, These 10 Stocks Run Wild. In this article, we are going to take a look at where Coty Inc. (NYSE:COTY) stands against other best-performing stocks.

Coty Inc. grew its share prices by 4.61 percent on Thursday to end at $4.99 apiece as investors turned optimistic towards its business amid the ongoing trade negotiations between the US and the European Union.

A significant chunk of Coty Inc.’s (NYSE:COTY) products are produced in Europe, and any positive impact from the ongoing trade talks could, in turn, dribble into the company’s profit margins and impact strategic direction.

A close-up of a woman’s face wearing a beauty product, highlighting the company’s range of luxury items.

Earlier this month, Coty Inc. (NYSE:COTY) announced that it was already poised to transfer manufacturing to the US from Europe and source supplies from other countries instead of China, if the global trade war continues to worsen.

In the third quarter of fiscal year 2025, Coty Inc. (NYSE:COTY) said it swung to a net loss attributable to shareholders of $409 million from a $500,000 net income in the same period a year earlier.

Net revenues also declined by 6.2 percent to $1.299 billion from $1.385 billion year-on-year.

Overall, COTY ranks 6th on our list of best-performing stocks. While we acknowledge the potential of COTY, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COTY and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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