Top Cosmetics Stocks for Q1 2022

KAOOY, ELF, and COTY are top for value, growth, and momentum, respectively

The cosmetics industry makes consumer beauty products such as makeup, lotions, shampoos, perfumes, hair colors, and accessories. Companies in this group include Revlon Inc. (REV), Inter Parfums Inc. (IPAR), and South Korea-based Amorepacific Corp. (090430). Although there is no direct benchmark for the cosmetics industry, most cosmetics companies are considered part of the consumer staples sector.

Cosmetics stocks, broadly represented by the Consumer Staples Select Sector SPDR ETF (XLP), have underperformed the larger market. XLP has provided investors with a total return of 19.2% over the past 12 months, below the Russell 1000's total return of 25.2%. These market performance numbers and the statistics in the tables below are as of Jan. 5, 2022.

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

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) 10.48 24.9 21.9
Ulta Beauty Inc. (ULTA) 401.49 21.7 25.7
The Estée Lauder Companies Inc. (EL) 356.11 128.2 43.2

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 Dec. 2, Ulta Beauty announced results for Q3 FY 2021, ended Oct. 30. Net income rose 10.8% as net sales increased by 28.6% year-over-year (YOY). The company attributed the sales growth to stronger consumer confidence and fewer COVID-19 restrictions compared with the prior-year quarter.
  • The Estée Lauder Companies Inc.: Estée Lauder manufactures and markets a wide range of skin care, makeup, fragrance, and hair care products. The company's Q1 FY 2022 ended Sept. 30, 2021. For that period, Estée Lauder reported 32.4% YOY growth in net earnings on 23.3% improvement in net sales. The company said that net sales climbed across every region and product category, reflecting the recovery of brick-and-mortar retail stores.

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 (%)
e.l.f. Beauty Inc. (ELF) 31.57 1.6 1,000 27.0
Ulta Beauty Inc. (ULTA) 401.49 21.7 198.5 28.6
The Estée Lauder Companies Inc. (EL) 356.11 128.2 32.4 23.3

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.: See company description above.

Cosmetics Stocks with the Most Momentum

These are the cosmetics stocks that had the highest total return over the last 12 months.

Cosmetics Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Coty Inc. (COTY) 10.27 8.4 49.1
Ulta Beauty Inc. (ULTA) 401.49 21.7 43.2
The Estée Lauder Companies Inc. (EL) 356.11 128.2 38.5
Russell 1000 N/A N/A 25.2
Consumer Staples Select Sector SPDR ETF (XLP) N/A N/A 19.2

Source: YCharts

  • 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, retailers, and airport duty free shops around the world. In late November, 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.
  • Ulta Beauty Inc.: See company description above.
  • The Estée Lauder Companies Inc.: See company description above.

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  1. YCharts. "Financial Data." Accessed Jan. 6, 2022.

  2. Ulta Beauty Inc. "Ulta Beauty Announces Record Quarter Fiscal 2021 Results." Accessed Jan. 6, 2022.

  3. The Estée Lauder Companies Inc. "The Estée Lauder Companies Reports Outstanding Fiscal 2022 First Quarter Results." Accessed Jan. 6, 2022.

  4. Coty Inc. "Coty Adds Ultra Premium Skincare Brand Orveda to Prestige Portfolio." Accessed Jan. 6, 2022.