The beauty industry made a strong recovery in 2021 as the world emerged from the Covid-19 pandemic. This trend is expected to continue in the coming months as mask mandates end and as the world moves back to normal. This article looks at some of the best beauty stocks to buy in 2022.
Estee Lauder (NYSE: EL) is one of the biggest beauty stocks in the world. The firm is well-known for its eponymous brand and other companies like Aveda, Aerin, Aramis, Clinique, Bobbi Brown, DKNY, and Jo Malon among many others.
Estee Lauder’s business has done well during the pandemic. Its sales dropped by less than $600 million during the Covid-19 pandemic to about $14.2 billion. In the trailing twelve months (ttm), the company has made revenues of $17.6 billion while its net income has risen to about $3 billion.
This explains why the Estee Lauder stock price has risen by about 40% in 2021. Analysts expect that the company will keep doing well. As such, it is a good investment because of the growth of its e-commerce business, strong brand, and stable dividend growth.
Coty (NYSE: COTY) is another leading beauty stock valued at more than $15 billion. The company focuses on the luxury and consumer businesses. Its brands include Covergirl, Adidas, Rimmel, Nautica, Burberry, Calvin Klein, and Hugo Boss among many others. The company owns about 51% stake of Kylie Jenner’s Kylie Cosmetics.
Coty has becn one of the best-performing beauty stocks in 2021. Its stock jumped by about 50% during the year as its sales bounced back. The firm has had revenues of more than $4.8 billion in the trailing twelve months while its losses have narrowed to about $196 million.
Coty is a good stock because of the strong organic growth of its business and its positioning in the social media industry.
ELF (NYSE: ELF) stands for Eyes, Lips, and Face. It is a relatively small company that focuses mostly on the mass market. The company sells beauty products that customers use for their three key parts.
The ELF stock price jumped by 27.19% in 2021 as the company’s sales made a robust recovery. For example, in its most recent quarter, its revenue jumped by 26% to $91 million. In the previous quarter, its sales rose by 50% to $97 million.
Although small, the company’s profits have improved. Therefore, the ELF stock price will likely keep growing as the industry recovers.