Top Cosmetics Stocks for Q2 2022

KAOOY is the top for value while ULTA is top for growth and performance.

The cosmetics industry makes consumer beauty products such as makeup, lotions, shampoos, perfumes, hair colors, and accessories. Companies in this group include Revlon Inc., Inter Parfums Inc., and South Korea-based Amorepacific Corp. Cosmetics stocks can be found in both the consumer staples and consumer discretionary sectors.

As of March 8, 2022, the S&P 500 Consumer Staples Sector Index has provided investors with a total return of 16.8%, while the S&P 500 Consumer Discretionary Sector Index has returned 3.1% over the past 12 months. By comparison, the Russell 1000 has returned 8.2%. These market performance numbers and the statistics in the tables below are as of March 8, 2022.

Here are the top 3 cosmetics stocks with the best value, fastest growth, and the best performance.

Best Value Cosmetics Stocks

These are the cosmetics stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Best Value Cosmetics Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Kao Corp. (KAOOY) 8.31 19.7 17.4
Ulta Beauty Inc. (ULTA) 359.02 19.4 23.0
Beiersdorf AG (BDRFY) 17.71 20.1 26.7

Source: YCharts

  • Kao Corp.: Kao is a Japan-based manufacturer of household and chemical products. In addition to cosmetics, the company also sells laundry and cleaning products, fatty chemicals, and edible oils.
  • Ulta Beauty Inc.: Ulta Beauty operates a chain of beauty stores throughout the U.S. The company sells cosmetics, skin and hair care products, fragrances, and salon services. It is the one exception in our list in that it is considered part of the consumer discretionary sector rather than the consumer staples sector. On March 10, Ulta Beauty announced results for FY 2021, ended Jan. 29, 2022. Net income rose more than five-fold to $985.8 as net sales increased by 40.3% year-over-year (YOY). The company attributed the sales growth to stronger consumer confidence, government stimulus, and fewer COVID-19 restrictions compared with the prior-year quarter.
  • Beiersdorf AG.: Beiersdorf AG is a German-based beauty company that develops, manufactures, and markets skin and personal care products. Its product portfolio includes brands including Nivea, Eucerin, La Prairie, Labello, and Hansaplast. On Feb. 2, the company completed the acquisition of Chantecaille Beaute Inc., USA to complement its premium skincare product segment. In December, Beiersdorf gave the business an enterprise value of $590 million to $690 million, and said Chantecaille Beaute is expected to post more than $100 million in revenue this year.

Fastest Growing Cosmetics Stocks

These are the top cosmetics stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general.

Fastest Growing Cosmetics Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Ulta Beauty Inc. (ULTA) 359.02 19.4 198.5 28.6
e.l.f. Beauty Inc. (ELF) 22.79 1.2 50.0 10.8
The Estée Lauder Companies Inc. (EL) 269.84 96.8 25.3 14.1

Source: YCharts

  • e.l.f. Beauty Inc.: e.l.f. Beauty provides mainly low-priced cosmetics products for the eyes, lips, and face. It offers eyeliners, lipsticks, powder, skin care products, and more.
  • Ulta Beauty Inc.: See company description above.
  • The Estée Lauder Companies Inc.: Estée Lauder manufactures and markets a wide range of skin care, makeup, fragrance, and hair care products. For its Q2 FY 2022 ended Dec. 31, 2021, the company reported that net earnings rose 25.2% on a 14% increase in net sales. It ended the year with $5 billion in cash and cash equivalents after returning $1.8 billion cash to shareholders through share repurchases and dividends.

Cosmetics Stocks with the Best Performance

These are the cosmetic stocks that had the best returns or smallest declines in total return over the past 12 months out of the companies we looked at.

Cosmetics Stocks with the Best Performance
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Ulta Beauty Inc. (ULTA) 359.02 19.4 3.8
L'Oreal S.A. (LRLCY) 72.60 202.4 0.3
Coty Inc. (COTY) 7.66 6.4 -1.9
Russell 1000 N/A N/A 8.2
S&P 500 Consumer Staples Sector Index N/A N/A 16.8
S&P 500 Consumer Discretionary Sector Index N/A N/A 3.1

Source: YCharts

  • Ulta Beauty Inc.: See company description above.
  • L'Oreal S.A.: L'Oreal is a French cosmetics company that manufactures and sells beauty and hair products. Its product offerings are grouped into six business segments: skincare, makeup, hair care, hair coloring, fragrances, and others.
  • Coty Inc.: Coty is a maker and distributor of beauty products including color cosmetics, hygiene products, fragrances, sun care products, and skin treatments. Coty products are sold in department stores, retail shops, and airport duty-free shops around the world. In late 2021, Coty announced that it had entered into a licensing agreement with Orveda, a French ultra-premium skincare brand offering 22 healthy skin glow activators and other products. The terms of the deal were not announced.

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  1. YCharts. "Financial Data."

  2. Ulta Beauty Inc. "Ulta Beauty Announces Fourth Quarter Fiscal 2021 Results."

  3. MarketWatch. "Beiersdorf to Acquire Chantecaille's Skin-Care Business."

  4. Beiersdorf AG. "Press Releases: Beiersdorf Successfully Completes Acquisition of Chantecaille."

  5. The Estée Lauder Companies Inc. "The Estée Lauder Companies Reports Outstanding Fiscal 2022 First Quarter Results."

  6. Coty Inc. "Coty Adds Ultra Premium Skincare Brand Orveda to Prestige Portfolio."

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