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4 Cosmetic Stocks to Watch as Consumers Get Ready to Head Out
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Rising demand for skincare and other personal care products has been working in favor of a number of cosmetic companies. Also, increased at-home grooming amid the pandemic has stimulated demand for such products. Apart from these, companies are seeing a revival in makeup trends. This can be attributed to the relatively increased social meetings and reduced mask usage, with pandemic-led curbs being relaxed and vaccination drives gathering pace. Additionally, fragrance and haircare categories are performing well, with the latter gaining on the DIY trends, hair color and hair styling tools. In fact, increased consumer awareness has boosted demand for organic skincare and “clean beauty” products.
Clearly, there is an elevated demand across different age groups that is working well for cosmetic companies. Per a statista report, the global skincare market is anticipated to grow to more than $180 billion by 2024 from $134.5 billion in 2018.
Such trends have kept cosmetic players on wheels in terms of coming up with the necessary innovation and product launches. Apart from focusing on bringing newness, cosmetic companies have also been fueling brand portfolios through prudent buyouts and alliances. Certainly, a focus on resonating well with consumers’ evolving preferences bodes well.
These factors keep cosmetic players well placed amid a soft travel retail network, which remains somewhat affected by limited international travel amid the pandemic. That said, rebounding store traffic in America, along with strength in online operations, is a major upside. Incidentally, a number of cosmetic companies have been gaining on rising e-commerce sales in the prestige as well as mass categories. To this end, focus on expanding brand presence on third-party sites and e-retailers and solid brick & click execution have been drivers.
All said, let’s take a look at a few Zacks Cosmetics industry stocks, which appear well positioned on the back of their concerted brand enhancement endeavors and efforts to keep pace with consumers’ demand.
Image Source: Zacks Investment Research
4 Cosmetic Stocks Stealing Attention
Inter Parfums, Inc. (IPAR - Free Report) : This manufacturer, distributor and marketer of a wide range of fragrances and fragrance products has been benefiting from its focus on innovation and product launches. The company has been making efforts to augment growth and exploring potential license deals with different brands in this respect. The New York-based company’s first-quarter 2021 results were robust, wherein sales growth was greater than management’s expectations. Management stated that Inter Parfums’ business is particularly sturdy in regions where lockdowns have been eased, stores have reopened and activities have reverted to the old normal, especially in Asia and North America. Management expects net sales of roughly $700 million for 2021, which suggests an increase from nearly $539 million delivered in 2020. Markedly, Inter Parfums has a trailing four-quarter earnings surprise of 27.3%, on average. The consensus mark for its current fiscal-year earnings has increased 16.2% in the past 60 days. Impressively, this Zacks Rank #1 (Strong Buy) stock has rallied 22.1% so far this year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nu Skin Enterprises, Inc. (NUS - Free Report) : This Zacks Rank #2 (Buy) company is focused on empowering its network of sales leaders. Also, impressive product launches of this developer and distributor of premium cosmetics, beauty, personal care and wellness products have been yielding results. Apart from these, the company’s digital business has been doing well, especially amid the pandemic. Notably, the consensus mark for Nu Skin’s current fiscal-year bottom line has inched up 1.4% over the past 30 days. Moreover, the company has a trailing four-quarter earnings surprise of 18.8%, on average. Shares of Nu Skin have gained 8.8% in the year-to-date period.
The Estee Lauder Companies Inc. (EL - Free Report) : Estee Lauder has been benefiting from its robust skincare category. Further, the company’s online business has been performing well and is likely to remain a major growth engine. In fact, Estee Lauder’s brand teams have been fully committed to enhancing consumers’ experiences online, especially amid the pandemic. Apart from these, strong cost-saving measures have been aiding margins. This Zacks Rank #3 (Hold) company has an estimated long-term earnings growth rate of 10.7%. Further, this manufacturer and marketer of skincare, makeup, fragrance and hair care products has seen the consensus mark for current fiscal earnings move north by 3.5% in the past 60 days. Well, shares of this New York-based company have risen 12.7% year to date.
Coty Inc. (COTY - Free Report) : This manufacturer, marketer and distributor of beauty products has seen its shares jump 25.3% in the year so far. This Zacks Rank #3 company has been benefiting from a focus on core priorities, which include stabilizing Consumer Beauty make-up brands and mass fragrances; accelerating luxury fragrances and setting up Coty as a core player in prestige make-up; establishing a skincare portfolio in prestige and mass channels; strengthening e-commerce and Direct-to-Consumer capabilities; growing presence in China via Prestige and certain Consumer Beauty brands; and establishing Coty as an industry leader in sustainability. Further, the company has been bolstering its portfolio through prudent partnerships. Also, a focus on optimizing cost structure bodes well. The Zacks Consensus Estimate for the company’s current fiscal earnings has surged 40% in the past 30 days.
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After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
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Image: Bigstock
4 Cosmetic Stocks to Watch as Consumers Get Ready to Head Out
Rising demand for skincare and other personal care products has been working in favor of a number of cosmetic companies. Also, increased at-home grooming amid the pandemic has stimulated demand for such products. Apart from these, companies are seeing a revival in makeup trends. This can be attributed to the relatively increased social meetings and reduced mask usage, with pandemic-led curbs being relaxed and vaccination drives gathering pace. Additionally, fragrance and haircare categories are performing well, with the latter gaining on the DIY trends, hair color and hair styling tools. In fact, increased consumer awareness has boosted demand for organic skincare and “clean beauty” products.
Clearly, there is an elevated demand across different age groups that is working well for cosmetic companies. Per a statista report, the global skincare market is anticipated to grow to more than $180 billion by 2024 from $134.5 billion in 2018.
Such trends have kept cosmetic players on wheels in terms of coming up with the necessary innovation and product launches. Apart from focusing on bringing newness, cosmetic companies have also been fueling brand portfolios through prudent buyouts and alliances. Certainly, a focus on resonating well with consumers’ evolving preferences bodes well.
These factors keep cosmetic players well placed amid a soft travel retail network, which remains somewhat affected by limited international travel amid the pandemic. That said, rebounding store traffic in America, along with strength in online operations, is a major upside. Incidentally, a number of cosmetic companies have been gaining on rising e-commerce sales in the prestige as well as mass categories. To this end, focus on expanding brand presence on third-party sites and e-retailers and solid brick & click execution have been drivers.
All said, let’s take a look at a few Zacks Cosmetics industry stocks, which appear well positioned on the back of their concerted brand enhancement endeavors and efforts to keep pace with consumers’ demand.
4 Cosmetic Stocks Stealing Attention
Inter Parfums, Inc. (IPAR - Free Report) : This manufacturer, distributor and marketer of a wide range of fragrances and fragrance products has been benefiting from its focus on innovation and product launches. The company has been making efforts to augment growth and exploring potential license deals with different brands in this respect. The New York-based company’s first-quarter 2021 results were robust, wherein sales growth was greater than management’s expectations. Management stated that Inter Parfums’ business is particularly sturdy in regions where lockdowns have been eased, stores have reopened and activities have reverted to the old normal, especially in Asia and North America. Management expects net sales of roughly $700 million for 2021, which suggests an increase from nearly $539 million delivered in 2020. Markedly, Inter Parfums has a trailing four-quarter earnings surprise of 27.3%, on average. The consensus mark for its current fiscal-year earnings has increased 16.2% in the past 60 days. Impressively, this Zacks Rank #1 (Strong Buy) stock has rallied 22.1% so far this year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nu Skin Enterprises, Inc. (NUS - Free Report) : This Zacks Rank #2 (Buy) company is focused on empowering its network of sales leaders. Also, impressive product launches of this developer and distributor of premium cosmetics, beauty, personal care and wellness products have been yielding results. Apart from these, the company’s digital business has been doing well, especially amid the pandemic. Notably, the consensus mark for Nu Skin’s current fiscal-year bottom line has inched up 1.4% over the past 30 days. Moreover, the company has a trailing four-quarter earnings surprise of 18.8%, on average. Shares of Nu Skin have gained 8.8% in the year-to-date period.
The Estee Lauder Companies Inc. (EL - Free Report) : Estee Lauder has been benefiting from its robust skincare category. Further, the company’s online business has been performing well and is likely to remain a major growth engine. In fact, Estee Lauder’s brand teams have been fully committed to enhancing consumers’ experiences online, especially amid the pandemic. Apart from these, strong cost-saving measures have been aiding margins. This Zacks Rank #3 (Hold) company has an estimated long-term earnings growth rate of 10.7%. Further, this manufacturer and marketer of skincare, makeup, fragrance and hair care products has seen the consensus mark for current fiscal earnings move north by 3.5% in the past 60 days. Well, shares of this New York-based company have risen 12.7% year to date.
Coty Inc. (COTY - Free Report) : This manufacturer, marketer and distributor of beauty products has seen its shares jump 25.3% in the year so far. This Zacks Rank #3 company has been benefiting from a focus on core priorities, which include stabilizing Consumer Beauty make-up brands and mass fragrances; accelerating luxury fragrances and setting up Coty as a core player in prestige make-up; establishing a skincare portfolio in prestige and mass channels; strengthening e-commerce and Direct-to-Consumer capabilities; growing presence in China via Prestige and certain Consumer Beauty brands; and establishing Coty as an industry leader in sustainability. Further, the company has been bolstering its portfolio through prudent partnerships. Also, a focus on optimizing cost structure bodes well. The Zacks Consensus Estimate for the company’s current fiscal earnings has surged 40% in the past 30 days.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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