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4 Cosmetics Stocks Worth Watching on Favorable Industry Trends
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Companies within the Zacks Cosmetics industry are benefiting from continued demand for skincare, makeup, fragrance and personal care products, driven by consumers' growing focus on self-care, wellness and beauty routines. Innovation remains a key growth catalyst, with companies investing in science-backed formulations, clean beauty offerings and digital technologies to enhance customer engagement and expand their market reach.
At the same time, companies are navigating a cautious spending environment, elevated input costs and ongoing supply-chain uncertainties. To drive growth and remain competitive, industry players such as The Estee Lauder Companies Inc. (EL - Free Report) , e.l.f. Beauty, Inc. (ELF - Free Report) , Helen of Troy Limited (HELE - Free Report) and Nu Skin Enterprises, Inc. (NUS - Free Report) are focusing on omnichannel expansion, product innovation and operational efficiencies.
About the Industry
The Zacks Cosmetics industry includes companies that provide beauty and personal care products. Players in the industry manufacture, distribute, sell and market skincare, fragrance, makeup and hair care products. Many firms in the market sell products via sales representatives, whereas some do the same through retailers, independent and chain drug stores and pharmacies, upscale perfumeries, department stores and beauty salons. These companies also operate through retailer websites, third-party distributors and in-flight and duty-free shops. Some products offered by industry participants include moisturizers, serums, toners and cleansers under skincare; perfume sprays, candles and soaps under fragrance; lipsticks, mascaras, powders, eye shadows, foundation and nail polishes under makeup; and shampoos, conditioners and hair color products under hair care.
Trends Shaping the Future of the Cosmetics Industry
Innovation and Digitalization Driving Growth: Innovation and digitalization remain key growth drivers in the beauty and skincare market. Consumers are increasingly seeking differentiated products that combine advanced technology with science-backed formulations, prompting companies to continuously innovate and expand their offerings. Rising demand for clean, organic and wellness-focused beauty products is further supporting industry growth. Enhancing e-commerce capabilities remains a major focus, with virtual try-ons, seamless digital payment solutions and data-driven marketing helping brands improve customer engagement. In addition, strategic acquisitions and partnerships are enabling companies to broaden product portfolios and strengthen their competitive positioning.
Strong Demand for Skincare & Makeup: Demand for skincare and makeup products continues to support growth across the cosmetics industry. Consumers remain focused on self-care, wellness and personalized beauty solutions, driving interest in skincare products and daily beauty routines. Makeup demand also remains healthy, supported by product innovation, social media influence and evolving consumer preferences. In addition, fragrance and haircare categories are experiencing solid momentum, fueled by premiumization trends and new product launches. These trends are expected to continue creating growth opportunities for cosmetics companies.
Challenging Economic Conditions: The cosmetics industry continues to face challenges amid an uncertain macroeconomic environment. Ongoing trade tensions, cautious consumer spending and uneven retail inventory trends are influencing demand across several markets. While beauty products have generally demonstrated resilience, consumers remain value conscious and are increasingly selective in their discretionary purchases. At the same time, companies are facing higher costs for ingredients, packaging materials, logistics and promotional activities, which may pressure profit margins. Additionally, evolving trade policies and potential supply-chain disruptions could further increase costs and affect pricing strategies, creating a challenging and competitive operating environment.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Cosmetics industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #107, which places it in the top 43% of more than 247 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries leads to a positive aggregate earnings outlook for the constituent companies. Since the beginning of April 2026, the industry’s consensus estimate for current financial-year earnings has increased 17%.
Before we present a few stocks that you may want to consider for your portfolio, let’s look at the industry’s recent stock market performance and valuation picture.
Industry vs. Broader Market
The Zacks Cosmetics industry has underperformed the S&P 500 composite and the broader Zacks Consumer Staples sector over the past year.
The industry has moved down 3.2% over this period, against the S&P 500 and the broader sector’s increase of 29.9% and 0.2%, respectively.
One-Year Price Performance
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), which is commonly used to value consumer staples stocks, the industry is currently trading at 20.19X compared with the S&P 500’s 21.76X and the sector’s 16.91X.
In the past five years, the industry has traded as high as 40.47X and as low as 20.19X, with the median being 28.81X, as the chart below shows.
Price-to-Earnings Ratio (Past Five Years)
4 Cosmetic Stocks Worth Considering
The Estee Lauder Companies: This Zacks Rank #2 (Buy) company manufactures and markets skincare, makeup, fragrance and hair care products through a portfolio of premium beauty brands. The company is focused on restoring profitability and driving long-term growth through its Profit Recovery and Growth Plan. EL’s “Beauty Reimagined” strategy is aimed at strengthening its position as a consumer-centric prestige beauty company by enhancing innovation, expanding across high-growth markets and digital channels, and improving operational efficiency. With a strong online presence, continued product innovation and investments in technology and data capabilities, the company remains focused on increasing agility, streamlining operations and supporting sustainable long-term growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for EL’s current fiscal-year earnings per share (EPS) has remained unchanged in the past 30 days at $2.41. The stock has gained 17.1% in the past year.
Price and Consensus: EL
Helen of Troy: This provider of consumer products across the Beauty, Housewares and Health & Home segments carries a Zacks Rank #2. Helen of Troy focuses on strengthening its leadership brands through strategic investments in innovation, marketing and consumer engagement. The company is pursuing initiatives to enhance operational efficiency, improve supply-chain capabilities and support long-term growth. Through a data-driven and consumer-centric approach, it aims to strengthen brand fundamentals and drive market share gains. Helen of Troy is also expanding its international presence while investing in digital and e-commerce capabilities, positioning the business to capitalize on evolving consumer trends and create sustainable long-term value.
The Zacks Consensus Estimate for Helen of Troy’s current fiscal-year EPS has remained unchanged in the past 30 days at $3.44. The stock has risen 8.4% in the past year.
Price and Consensus: HELE
Nu Skin: This Zacks Rank #3 (Hold) company develops and distributes a broad portfolio of beauty, personal care and wellness products. Nu Skin is focused on expanding its global presence through innovation, digital capabilities and customer engagement initiatives. The company continues to strengthen its brand portfolio with science-based products while leveraging technology to enhance personalized beauty and wellness solutions. Nu Skin is also pursuing opportunities in emerging markets through localized products and tailored business strategies designed to meet evolving consumer preferences. Supported by its direct-selling model, product innovation and ongoing investments in technology and operational efficiency, the company remains focused on driving long-term sustainable growth.
The Zacks Consensus Estimate for NUS’ current fiscal-year EPS has remained unchanged at $1.00 in the past 30 days. Shares of Nu Skin have declined 35% in the past year.
Price and Consensus: NUS
e.l.f. Beauty: This Zacks Rank #3 company offers a broad range of cosmetics and skincare products with a strong focus on delivering high-quality beauty products at accessible price points. e.l.f. Beauty has built a differentiated position through its value-driven proposition, combining affordability with innovation and strong consumer engagement. The company continues to support growth through digital capabilities, community-led marketing and a portfolio of complementary beauty brands. The company is also expanding its international presence, broadening distribution and strengthening reach across key markets. With a focus on inclusivity, product innovation and brand-building, e.l.f. Beauty remains well positioned to capitalize on long-term opportunities in the global beauty industry.
The Zacks Consensus Estimate for ELF’s current fiscal-year EPS moved down 8.6% in the past 30 days to $3.30. e.l.f. Beauty’s stock has fallen 46.7% in the past year.
View the Zacks #1 Rank List
Image: Bigstock
4 Cosmetics Stocks Worth Watching on Favorable Industry Trends
Companies within the Zacks Cosmetics industry are benefiting from continued demand for skincare, makeup, fragrance and personal care products, driven by consumers' growing focus on self-care, wellness and beauty routines. Innovation remains a key growth catalyst, with companies investing in science-backed formulations, clean beauty offerings and digital technologies to enhance customer engagement and expand their market reach.
At the same time, companies are navigating a cautious spending environment, elevated input costs and ongoing supply-chain uncertainties. To drive growth and remain competitive, industry players such as The Estee Lauder Companies Inc. (EL - Free Report) , e.l.f. Beauty, Inc. (ELF - Free Report) , Helen of Troy Limited (HELE - Free Report) and Nu Skin Enterprises, Inc. (NUS - Free Report) are focusing on omnichannel expansion, product innovation and operational efficiencies.
About the Industry
The Zacks Cosmetics industry includes companies that provide beauty and personal care products. Players in the industry manufacture, distribute, sell and market skincare, fragrance, makeup and hair care products. Many firms in the market sell products via sales representatives, whereas some do the same through retailers, independent and chain drug stores and pharmacies, upscale perfumeries, department stores and beauty salons. These companies also operate through retailer websites, third-party distributors and in-flight and duty-free shops. Some products offered by industry participants include moisturizers, serums, toners and cleansers under skincare; perfume sprays, candles and soaps under fragrance; lipsticks, mascaras, powders, eye shadows, foundation and nail polishes under makeup; and shampoos, conditioners and hair color products under hair care.
Trends Shaping the Future of the Cosmetics Industry
Innovation and Digitalization Driving Growth: Innovation and digitalization remain key growth drivers in the beauty and skincare market. Consumers are increasingly seeking differentiated products that combine advanced technology with science-backed formulations, prompting companies to continuously innovate and expand their offerings. Rising demand for clean, organic and wellness-focused beauty products is further supporting industry growth. Enhancing e-commerce capabilities remains a major focus, with virtual try-ons, seamless digital payment solutions and data-driven marketing helping brands improve customer engagement. In addition, strategic acquisitions and partnerships are enabling companies to broaden product portfolios and strengthen their competitive positioning.
Strong Demand for Skincare & Makeup: Demand for skincare and makeup products continues to support growth across the cosmetics industry. Consumers remain focused on self-care, wellness and personalized beauty solutions, driving interest in skincare products and daily beauty routines. Makeup demand also remains healthy, supported by product innovation, social media influence and evolving consumer preferences. In addition, fragrance and haircare categories are experiencing solid momentum, fueled by premiumization trends and new product launches. These trends are expected to continue creating growth opportunities for cosmetics companies.
Challenging Economic Conditions: The cosmetics industry continues to face challenges amid an uncertain macroeconomic environment. Ongoing trade tensions, cautious consumer spending and uneven retail inventory trends are influencing demand across several markets. While beauty products have generally demonstrated resilience, consumers remain value conscious and are increasingly selective in their discretionary purchases. At the same time, companies are facing higher costs for ingredients, packaging materials, logistics and promotional activities, which may pressure profit margins. Additionally, evolving trade policies and potential supply-chain disruptions could further increase costs and affect pricing strategies, creating a challenging and competitive operating environment.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Cosmetics industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #107, which places it in the top 43% of more than 247 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries leads to a positive aggregate earnings outlook for the constituent companies. Since the beginning of April 2026, the industry’s consensus estimate for current financial-year earnings has increased 17%.
Before we present a few stocks that you may want to consider for your portfolio, let’s look at the industry’s recent stock market performance and valuation picture.
Industry vs. Broader Market
The Zacks Cosmetics industry has underperformed the S&P 500 composite and the broader Zacks Consumer Staples sector over the past year.
The industry has moved down 3.2% over this period, against the S&P 500 and the broader sector’s increase of 29.9% and 0.2%, respectively.
One-Year Price Performance
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), which is commonly used to value consumer staples stocks, the industry is currently trading at 20.19X compared with the S&P 500’s 21.76X and the sector’s 16.91X.
In the past five years, the industry has traded as high as 40.47X and as low as 20.19X, with the median being 28.81X, as the chart below shows.
Price-to-Earnings Ratio (Past Five Years)
4 Cosmetic Stocks Worth Considering
The Estee Lauder Companies: This Zacks Rank #2 (Buy) company manufactures and markets skincare, makeup, fragrance and hair care products through a portfolio of premium beauty brands. The company is focused on restoring profitability and driving long-term growth through its Profit Recovery and Growth Plan. EL’s “Beauty Reimagined” strategy is aimed at strengthening its position as a consumer-centric prestige beauty company by enhancing innovation, expanding across high-growth markets and digital channels, and improving operational efficiency. With a strong online presence, continued product innovation and investments in technology and data capabilities, the company remains focused on increasing agility, streamlining operations and supporting sustainable long-term growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for EL’s current fiscal-year earnings per share (EPS) has remained unchanged in the past 30 days at $2.41. The stock has gained 17.1% in the past year.
Price and Consensus: EL
Helen of Troy: This provider of consumer products across the Beauty, Housewares and Health & Home segments carries a Zacks Rank #2. Helen of Troy focuses on strengthening its leadership brands through strategic investments in innovation, marketing and consumer engagement. The company is pursuing initiatives to enhance operational efficiency, improve supply-chain capabilities and support long-term growth. Through a data-driven and consumer-centric approach, it aims to strengthen brand fundamentals and drive market share gains. Helen of Troy is also expanding its international presence while investing in digital and e-commerce capabilities, positioning the business to capitalize on evolving consumer trends and create sustainable long-term value.
The Zacks Consensus Estimate for Helen of Troy’s current fiscal-year EPS has remained unchanged in the past 30 days at $3.44. The stock has risen 8.4% in the past year.
Price and Consensus: HELE
Nu Skin: This Zacks Rank #3 (Hold) company develops and distributes a broad portfolio of beauty, personal care and wellness products. Nu Skin is focused on expanding its global presence through innovation, digital capabilities and customer engagement initiatives. The company continues to strengthen its brand portfolio with science-based products while leveraging technology to enhance personalized beauty and wellness solutions. Nu Skin is also pursuing opportunities in emerging markets through localized products and tailored business strategies designed to meet evolving consumer preferences. Supported by its direct-selling model, product innovation and ongoing investments in technology and operational efficiency, the company remains focused on driving long-term sustainable growth.
The Zacks Consensus Estimate for NUS’ current fiscal-year EPS has remained unchanged at $1.00 in the past 30 days. Shares of Nu Skin have declined 35% in the past year.
Price and Consensus: NUS
e.l.f. Beauty: This Zacks Rank #3 company offers a broad range of cosmetics and skincare products with a strong focus on delivering high-quality beauty products at accessible price points. e.l.f. Beauty has built a differentiated position through its value-driven proposition, combining affordability with innovation and strong consumer engagement. The company continues to support growth through digital capabilities, community-led marketing and a portfolio of complementary beauty brands. The company is also expanding its international presence, broadening distribution and strengthening reach across key markets. With a focus on inclusivity, product innovation and brand-building, e.l.f. Beauty remains well positioned to capitalize on long-term opportunities in the global beauty industry.
The Zacks Consensus Estimate for ELF’s current fiscal-year EPS moved down 8.6% in the past 30 days to $3.30. e.l.f. Beauty’s stock has fallen 46.7% in the past year.
Price and Consensus: ELF