雅虎香港財經 12 Best Household and Personal Care Stocks To Buy
In this article, we discuss 12 best household and personal care stocks to buy. If you want to see more stocks in this selection, check out 5 Best Household and Personal Care Stocks To Buy.
Proficient Market Insights reported that the worldwide market for beauty and personal care products sold online was worth $56,533.35 million in 2022, and it is projected to grow at a compound annual growth rate (CAGR) of 21.96% during the forecast period, which will take it to $186,064.53 million by 2028.
According to Expert Market Research, the global household care market reached $102.5 billion in 2022 and is forecasted to grow at a CAGR of 3.8% between 2023 and 2028. By the end of the forecast period, the market is estimated to reach around $127.5 billion. More than half of the household care market is occupied by the laundry detergent segment. Household care products are widely used in North America, Europe, and the Asia Pacific region. In the future, developing economies are expected to grow faster than developed economies, which makes countries like India and China potential key players in the household care market. In particular, China and India are leading consumers of household care products in the Asia Pacific region, with detergents being the most popular. The Asia Pacific region contributes 50% of the global detergent industry.
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Due to the outbreak of COVID-19, many people experienced skin issues such as rashes and itching, likely caused by excessive use of hand sanitizers and soaps. Doctors even reported rashes from wearing personal protective equipment (PPE) kits, as per a beauty and personal care products market analysis by Mordor Intelligence. As a result, the personal care market has grown as people prioritize taking care of their skin. In addition, the increasing awareness of appearance among customers is a significant factor driving market expansion, particularly among millennials who regularly use beauty and personal care items in their grooming routine. The market has also expanded due to the emergence of cosmetics with natural, non-toxic, and organic components, as consumers are increasingly inclined toward organic personal care products. This trend is expected to continue during the forecast period. Furthermore, rising awareness of the harmful effects of chemicals and synthetic products is driving the market growth. Consumers are increasingly purchasing products with natural or organic labeling, further fueling market expansion. Market players have significant growth opportunities in the Asia Pacific region, specifically in countries such as China, India, Japan, Indonesia, and Vietnam. The growth is primarily due to the increasing millennial population in these countries.
Some of the best household stocks to pick up in order to benefit from the growth opportunities in the industry include The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and The Estée Lauder Companies Inc. (NYSE:EL).
Our Methodology
We scanned Insider Monkey’s database of 943 hedge funds and picked the top 12 companies that operate in the household and personal care sector with the highest number of hedge fund investors. These are the best household stocks to buy according to hedge funds.
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Best Household and Personal Care Stocks To Buy
12. Coty Inc. (NYSE:COTY)
Number of Hedge Fund Holders: 26
Coty Inc. (NYSE:COTY) is a global beauty products manufacturer and distributor that operates through two segments – Prestige and Consumer Beauty. The company offers fragrance, color cosmetics, and skin and body care products under a variety of brands, including Burberry, Calvin Klein, Gucci, and Kylie Jenner. Coty Inc. (NYSE:COTY) sells its products through prestige retailers, e-retailers, department stores, and duty-free shops.
On May 9, Coty Inc. (NYSE:COTY) reported a FQ3 Non-GAAP EPS of $0.19 and a revenue of $1.29 billion, outperforming Wall Street estimates by $0.14 and $60 million, respectively. Coty Inc. (NYSE:COTY) is experiencing significant demand growth in almost all of its product categories and markets, particularly in its Prestige fragrances. The company has been actively launching new products in both its Prestige and Consumer Beauty segments.
Deutsche Bank analyst Steve Powers on May 2 raised the firm's price target on Coty Inc. (NYSE:COTY) to $13 from $12 and kept a Buy rating on the shares ahead of the fiscal Q3 results.
According to Insider Monkey’s fourth quarter database, 26 hedge funds were bullish on Coty Inc. (NYSE:COTY), compared to 30 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the biggest stakeholder of the company, with approximately 2 million shares worth $16.5 million.
Like The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and The Estée Lauder Companies Inc. (NYSE:EL), Coty Inc. (NYSE:COTY) is one of the top household stocks to invest in.
Meridian Hedged Equity Fund made the following comment about Coty Inc. (NYSE:COTY) in its Q4 2022 investor letter:
“A leading global manufacturer and distributor of cosmetics, fragrances, and other beauty care goods, Coty Inc. (NYSE:COTY) advanced as steady consumer demand helped it post greater-than-expected quarterly revenues and improved gross margins. More broadly, the company is building momentum around a hi business transformation that’s in the early innings but has already seen success in e-commerce and direct-to-consumer gains, as well as a rising presence in China. It’s also sharpening its focus on its leading brands as evidenced by its December announcement that it was selling its Lacoste fragrance license back to Lacoste. Coty, which separately announced an expansion of its existing stock buyback program, said it will use the Lacoste deal proceeds to reduce its leverage.”
11. e.l.f. Beauty, Inc. (NYSE:ELF)
Number of Hedge Fund Holders: 29
e.l.f. Beauty, Inc. (NYSE:ELF) offers cosmetic and skincare products globally under different brand names such as e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare. Their product line includes eye, lip, face, and skin care items. On February 1, e.l.f. Beauty, Inc. (NYSE:ELF) reported a Q3 non-GAAP EPS of $0.48 and a revenue of $146.5 million, outperforming Wall Street estimates by $0.25 and $24.28 million, respectively. Revenue over the period climbed nearly 50% on a year-over-year basis.
On April 26, Korinne Wolfmeyer, an analyst at Piper Sandler, increased the company's price target for e.l.f. Beauty, Inc. (NYSE:ELF) to $105 from $95 and maintained an Overweight rating on the stock prior to the release of the Q1 results. The analyst believes that trade down, China, and travel are the most important factors to keep an eye on in the beauty and wellness sector this year.
According to Insider Monkey’s fourth quarter database, 29 hedge funds were bullish on e.l.f. Beauty, Inc. (NYSE:ELF), compared to 24 funds in the prior quarter. Richard Driehaus’ Driehaus Capital is the biggest stakeholder of the company, with 1.3 million shares worth $73 million.
Diamond Hill Long-Short Fund made the following comment about E.l.f. Beauty, Inc. (NYSE:ELF) in its Q4 2022 investor letter:
“New positions initiated in Q4 included shorts International Business Machines (IBM), Acushnet Holdings (GOLF) and E.l.f. Beauty, Inc. (NYSE:ELF). Shares of value-oriented beauty brand ELF received a meaningful boost from normalizing beauty usage and spending in a post-COVID environment, which we believe has contributed to its premium multiple relative to competitors in the beauty space. As this temporary lift unwinds, we expect elf’s valuation to similarly return to a level better aligned with its product offerings.”
10. Newell Brands Inc. (NASDAQ:NWL)
Number of Hedge Fund Holders: 29
Newell Brands Inc. (NASDAQ:NWL) is a global company that manufactures, produces, sources, and distributes a variety of consumer and commercial products across the world. The company has five main operating segments – Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, and Outdoor and Recreation. Newell Brands Inc. (NASDAQ:NWL) anticipates generating operating cash flow between $700 million and $900 million for FY2023. This projection includes cash payments of around $95 million to $120 million related to the Project Phoenix. It is one of the best household stocks to invest in.
On May 1, Deutsche Bank analyst Steve Powers maintained a Hold rating on Newell Brands Inc. (NASDAQ:NWL) and lowered the firm's price target on the shares to $13 from $14.
According to Insider Monkey’s fourth quarter database, 29 hedge funds were bullish on Newell Brands Inc. (NASDAQ:NWL), compared to 26 funds in the prior quarter. Richard S. Pzena’s Pzena Investment Management is the biggest stakeholder of the company, with 47.3 million shares worth $619.5 million.
9. Spectrum Brands Holdings, Inc. (NYSE:SPB)
Number of Hedge Fund Holders: 30
Spectrum Brands Holdings, Inc. (NYSE:SPB) is a company that focuses on providing branded consumer products worldwide. The company operates via three main segments – Home and Personal Care, Global Pet Care, and Home and Garden. It is one of the best household stocks to invest in.
On March 31, Peter Grom, an analyst at UBS, increased the company's price target for Spectrum Brands Holdings, Inc. (NYSE:SPB) to $87 from $84 and maintained a Buy rating on the stock. According to the analyst's research note, the performance of Spectrum Brands Holdings, Inc. (NYSE:SPB) is largely dependent on the outcome of the Hardware & Home Improvement business sale trial. However, UBS still views the risk/reward ratio of investing in the company as favorable.
According to Insider Monkey’s fourth quarter database, 30 hedge funds were bullish on Spectrum Brands Holdings, Inc. (NYSE:SPB), compared to 32 funds in the prior quarter.
Here is what Heartland Advisors has to say about Spectrum Brands Holdings, Inc. (NYSE:SPB) in its Q3 2021 investor letter:
“Narrowing the spectrum. While investors spent much of the period bidding up businesses based on sales growth expectations, we continue to be drawn to companies that have an improved outlook through self-help measures. Spectrum Brands Holdings (SPB), a household products company, is one such example.
Spectrum sells a variety of home goods through its market-leading brands including Black and Decker, Pfister and Remington. During the past 18 months, management has undertaken an initiative to exit non-core business lines such as auto care and batteries, reduce debt and improve efficiencies. The latest of these efforts came in mid -September when the company announced it was selling its home improvement segment for a sum greater than the market capitalization of the entire company.
Management expects to use the proceeds to further bolster Spectrum’s balance sheet, continue to buy back shares and do tuck-in acquisitions to increase scale in its secular growth businesses, such as Pet and Home and Garden lines.
Despite recent improvements in its share price, the company still trades at a meaningful discount to its peers on an enterprise value/earnings before interest, taxes, depreciation and amortization basis.”
8. Kimberly-Clark Corporation (NYSE:KMB)
Number of Hedge Fund Holders: 30
Kimberly-Clark Corporation (NYSE:KMB) produces and sells personal care and consumer tissue products across the world. The company comprises three main segments – Personal Care, Consumer Tissue, and K-C Professional. On April 20, the company declared a quarterly dividend of $1.18 per share, in line with previous. The dividend is payable on July 5, to shareholders of record on June 9. It is one of the premier household stocks to invest in.
On April 26, Lauren Lieberman, an analyst at Barclays, raised the price target for Kimberly-Clark Corporation (NYSE:KMB) to $140 from $131 and maintained an Equal Weight rating on the stock. According to the analyst's research note, investors are already aware that Kimberly-Clark Corporation (NYSE:KMB) is expected to experience a significant increase in gross margin and earnings growth. This is the reason why the reaction to the updated earnings guidance was relatively subdued.
According to Insider Monkey’s fourth quarter database, 30 hedge funds were bullish on Kimberly-Clark Corporation (NYSE:KMB), compared to 34 funds in the prior quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the biggest stakeholder of the company, with 1 million shares worth $140.6 million.
7. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 34
The Clorox Company (NYSE:CLX) produces, markets, and sells consumer and professional products worldwide. The company operates through four main segments – Health and Wellness, Household, Lifestyle, and International. On May 2, The Clorox Company (NYSE:CLX) reported a FQ3 non-GAAP EPS of $1.51 and a revenue of $1.91 billion, outperforming Wall Street estimates by $0.29 and $90 million, respectively. It is one of the best household stocks to invest in.
On May 3, Raymond James raised the firm's price target on The Clorox Company (NYSE:CLX) to $185 from $165 and kept an Outperform rating on the shares. According to the firm’s research note, The Clorox Company (NYSE:CLX) reported better-than-expected Q3 results, primarily due to year-over-year organic sales growth. The company has demonstrated its ability to recover lost margins and maintain strong demand despite increased pricing in December. Additionally, a portion of the gross margin beat is being used to support advertising efforts, which is seen as a positive move by the firm.
According to Insider Monkey’s fourth quarter database, 34 hedge funds were bullish on The Clorox Company (NYSE:CLX), compared to 27 funds in the prior quarter. Andreas Halvorsen’s Viking Global is the biggest stakeholder of the company, with 768,839 shares worth about $108 million.
Here is what LRT Capital Management has to say about The Clorox Company (NYSE:CLX) in its Q1 2021 investor letter:
“For several months now, our largest position has been Clorox – the cleaning products company. Besides wipes, the company also manufactures bleach, charcoal, cat litter, plastic bags, and container products. Clorox benefited during the Covid-19 pandemic from an increased demand for cleaning products. Companies and consumers trust the Clorox brand – a source of the company’s huge competitive advantage.
United Airlines, for example, chose to partner with Clorox in its push to reassure consumers about the safety of air travel. The company is a typical “defensive” holding – subject to very small fluctuations in end market demand. Its branded consumer products remain in strong demand. Historically (pre-Covid), the company’s sales grew in line with GDP, while earnings-per-share grew slightly faster due to operational and financial leverage. We expect sales will decline slightly in the next few quarters as the Covid-19 pandemic comes to an end, but we believe this decline is more than accounted for by the company’s low valuation.
On February 4th, Clorox reported results for Q4 2020, with both earnings and sales beating estimates. Sales grew by +27% (vs. 20% estimate) from the prior year’s Q4, and EPS increased +39% ($2.03 vs. $1.75 expected). The company continues to see robust demand and raised its sales and EPS guidance for the rest of the year. Shares are down 4% year-to-date. We believe the shares are undervalued at 20x trailing and 24x forward earnings and currently represent an excellent opportunity.”
6. Church & Dwight Co., Inc. (NYSE:CHD)
Number of Hedge Fund Holders: 36
Church & Dwight Co., Inc. (NYSE:CHD) creates, produces, and sells household, personal care, and specialty products. The company operates through three main segments – Consumer Domestic, Consumer International, and Specialty Products Division. On April 26, Church & Dwight Co., Inc. (NYSE:CHD) declared a $0.2725 per share quarterly dividend, in line with previous. The dividend is payable on June 1, to shareholders of record on May 15. The company also delivered market-beating Q1 2023 financial results.
On April 28, Deutsche Bank analyst Steve Powers raised the firm's price target on Church & Dwight Co., Inc. (NYSE:CHD) to $105 from $96 and maintained a Buy rating on the shares.
According to Insider Monkey’s fourth quarter database, 36 hedge funds were long Church & Dwight Co., Inc. (NYSE:CHD), compared to 40 funds in the earlier quarter. Terry Smith’s Fundsmith LLP is the largest stakeholder of the company, with 8.4 million shares worth $680.8 million.
In addition to The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and The Estée Lauder Companies Inc. (NYSE:EL), Church & Dwight Co., Inc. (NYSE:CHD) is one of the premier household stocks to invest in.
Renaissance Investment made the following comment about Church & Dwight Co., Inc. (NYSE:CHD) in its Q3 2022 investor letter:
“On the negative side, Church & Dwight Co., Inc. (NYSE:CHD) declined 22.7% after reporting first quarter operating results that were below expectations. The company also lowered guidance on macroeconomic concerns, with management citing softness across their product portfolio, especially for their discretionary categories, as retailers work on reducing inventory levels.”
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Disclosure: None. 12 Best Household and Personal Care Stocks To Buy is originally published on Insider Monkey.
