Due to the Corona Virus Pandemic, consumers had limited the purchase of cosmetics. People bought only the basic necessity of items like food and hygiene products. Now the economies in the world are opening up, and life is coming to its track again. People are now going to include cosmetics in their shopping list, which will benefit the company’s stocks. It’s important to know that you should buy the reserves to keep safe from the dangers from which you should purchase the supplies.
Now the question arises, what constitutes the cosmetic industry? All companies making makeup, haircare, skincare, perfumes, toiletries, and various oral cosmetics come under the cosmetic industry’s flag. Almost 39% of the global market comprises it. It is assumed that in 2021 Luxury skincare is going to make huge profits. Furthermore, the gains are estimated to reach $429.8 billion in the year 2022. Many multinationals are dominating it. There is a lack of a single benchmark for this industry.
Top Three Cosmetic Stocks:
Beauty is an integral part of our lives, and everybody likes to use beautiful products. Let’s talk about the three top cosmetic stocks that are the fastest-growing, having the best value in the coming months.
1: L’Oreal SA (OTCMKTS: LRLCY)
L’Oreal is manufacturing personal care products, and consumers love all its products, resulting in higher trade of its stocks. It is one of the most popular and largest cosmetic industries in the world.
In the Covid-19 situation, there was a decline in cosmetic sales, but because of its health-related products and open pharmacy channel, we saw a moderation in its profits. In Apri 2020, L’Oreal experienced a decline and gained 7.22 billion euros in sales. While on the other hand, the sales in China and other countries had a positive impact on the share price of L’Oreal.
Having partnerships with other cosmetic companies and the fashion industry will make profits in the coming days. Its stock had been rising by 9% in the current year. Its future is even more promising as the Covid-19 is coming to its end, and the global leader of cosmetics LRLCY will go back to its track of making profits.
2: Ultra Beauty Inc. (ULTA)
Ultra Beauty has been a well-known cosmetic company in the United States of America. It has got a chain of beauty stores selling cosmetics, skincare, and hair care products. Moreover, it is also known for the best fragrances and salon service products. During the Covid-19 issue, its net sales decreased by 7.8% YOY. It made the gross income fell to 42.3% consequently. But as the situation will be alright soon, we can see an upsurge in its gross profit and the trade of its shares. ULTA stock is currently considered to be the stock with the most momentum.
3: Coty Inc. (COTY)
Coty Inc. has made its name in the cosmetic industry for fragrances, skincare, and sun care protection products. Color cosmetics and beautiful fragrances are also part of its specialties. Mass-market retailers, specialty, departmental stores¸, and duty-free shops are the sources through which its products get access to the public. Coty Inc. is one of those companies that have the most profit growth this year and having an optimistic estimation of an increase in its stock price.