Cosmetics stocks are not often talked about on the street, despite the industry being one of the largest and fastest-growing markets in the world.
The global cosmetics market size was valued at USD 262.21 billion in 2022, and is expected to grow at a compound annual growth rate (CAGR) of 4.3% from 2023 to 2030 (Grand View Research, 2022).
This represents a great opportunity for investors to explore the cosmetics industry, and capitalize on some of the biggest players in the market.
Below, we will present the 7 Best Cosmetics Stocks to Consider in 2023!
Best Cosmetics Stocks to Consider for 2023
1. L’Oreal S.A. (OTC: LRLCY)
- Ticker: LRLCY
- Dividend Yield: 1.44%
- Market Cap: $245.51 Billion
L’Oreal is the largest cosmetics companies in the world, with a market capitalization of over USD 200 billion.
The company offers a wide range of products, including makeup, skincare, hair care, and fragrances.
L’Oreal’s products are sold in more than 150 countries and are available in all distribution channels, from mass market to luxury goods.
L’Oreal is also committed to sustainability, with a goal to reduce its carbon footprint by 50% by 2030.
2. The Estee Lauder Companies (NYSE: EL)
- Ticker: EL
- Dividend Yield: 1.33%
- Market Cap: $72.64 Billion
Estee Lauder is a multinational cosmetics company that offers a wide range of beauty products, including skincare, makeup, fragrance, and hair care.
The company’s portfolio includes popular brands such as Estee Lauder, Clinique, and MAC.
Estee Lauder has a market capitalization of over $70 billion and has seen steady revenue growth in recent years.
The stock is currently down more than 20% YTD, attributed to declining revenues, margins and EPS forecasts for 2023.
Despite the company dealing with a slowing economy and higher interest rates, the future for Estee Lauder remains bright.
3. Ulta Beauty (NASDAQ: ULTA)
- Ticker: ULTA
- Dividend Yield: N/A
- Market Cap: $25.84 Billion
Ulta Beauty is a beauty retailer that offers a wide range of cosmetics, skincare, and fragrance products from various brands.
The company operates both online and in physical stores across the United States.
Ulta Beauty has a market capitalization of over $20 billion and the stock has more than doubled in price over the last 5 years.
Ulta employs more than 53,000 people and has approximately $5.37 billion in total assets.
In 2022, the company had annual revenues of $8.63 Billion.
4. E.l.f. Beauty (NASDAQ: ELF)
- Ticker: ELF
- Dividend Yield: N/A
- Market Cap: $4.88 Billion
E.l.f. Beauty is a cosmetics company that offers a range of affordable makeup and skincare products.
The company’s portfolio includes popular brands such as e.l.f., W3LL PEOPLE, and Keys Soulcare.
E.l.f. Beauty has a market capitalization of over $4.5 billion and the stock is currently up 65% YTD on the back of strong revenue and EPS growth.
Elf employs more than 250 people and has approximately $495 million in total assets.
In 2022, the company had annual revenues of $392 million.
5. Unilever (NYSE: UL)
- Ticker: UL
- Dividend Yield: 3.29%
- Market Cap: $136.99 Billion
Unilever is a multinational consumer goods company that offers a wide range of products, including cosmetics, personal care, and food and beverages.
The company’s cosmetics portfolio includes popular brands such as Dove, Axe, and Vaseline.
Unilever employs more than 120,000 people and has approximately $81.99 billion in total assets.
In 2022, the company had annual revenues of $63.29 Billion.
6. Procter & Gamble (NYSE: PG)
- Ticker: PG
- Dividend Yield: 2.41%
- Market Cap: $367.71 Billion
Procter & Gamble is a multinational consumer goods company that offers a wide range of products, including cosmetics, personal care, and household products.
The company’s cosmetics portfolio includes popular brands such as Olay, SK-II, and CoverGirl.
Procter & Gamble employs more than 100,000 people and has approximately $117.20 billion in total assets.
In 2022, the company had annual revenues of $80.18 Billion.
7. Coty (NYSE: COTY)
- Ticker: COTY
- Dividend Yield: N/A
- Market Cap: $10.04 Billion
Coty is a beauty company that offers a wide range of cosmetics, skincare, and fragrance products.
The company’s portfolio includes popular brands such as Calvin Klein, Marc Jacobs, and Rimmel.
Coty employs more than 10,000 people and has approximately $12.11 billion in total assets.
In 2022, the company had annual revenues of $5.30 Billion.
Cosmetics Stocks: Wrapping Up
The cosmetics industry presents a wealth of investment opportunities, with many great companies to choose from.
Cosmetics stocks are often considered recession-proof, as demand for beauty and makeup products remain constant.
These seven companies are staples in the beauty and makeup industry, and represent some of the best cosmetics stocks to buy in 2023.
As always, it is important to conduct thorough research and consider your individual financial goals and risk tolerance before making any investment decisions.
Frequently Asked Questions (FAQs)
What is the best beauty stock?
The best beauty stock to buy for 2023 is Ulta Beauty (ULTA).
Is Sephora a publicly traded company?
Sephora is currently a private company, therefore investors can not buy Sephora stock.
What is the world’s largest cosmetics company?
The world’s largest cosmetics company is L’Oreal. They have a market capitalization of more than $200 billion.
Disclosure: The author holds no position mentioned in this article. Freedom Stocks has a disclosure policy.
