You don’t need to be a billionaire to invest in the personal products sector. However, smaller investors have an advantage in picking stocks because there aren’t a lot of significant institutional funds looking at these companies as potential investments. That’s good news for smaller investors who can gain a unique insight into these companies and their potential as investments based on their research rather than the due diligence of some large fund.
Coty Inc. (COTY)
Coty Inc. is the world’s leading designer, manufacturer, and marketer of fragrances, skincare, hair care, and cosmetics. The company is currently in the midst of a transformation from being a licensor of fragrances and other personal care products to becoming a brand owner in its own right. Coty’s change is expectchangeete by the end of 2019. Coty also targets an operating margin of at least 25% by 2020. The company currently trades at a market cap of $5.9 billion and has a forward P/E of 12.5x. Coty is expected to report full-year revenue of $6.85 billion, up from $6.74 billion in the fiscal year 2018.
Nu Skin Enterprises (NUS)
Nu Skin Enterprises is one of the world’s leading direct-selling companies focused on anti-aging products and nutritional supplements. Nu Skin is also one of the original network marketing companies, having been in business for more than 30 years. The company has a market cap of $5.6 billion. Nu Skin reported third-quarter revenue of $1.2 billion, up from $1.1 billion in the same period last year. Nu Skin also reported a net loss of $0.04 per share compared to a loss of $0.20 per share in the same quarter last year. The company is the previous entry trading at a forward P/E of 19.9x. Nu Skin is expected to report full-year revenue of $4.0 billion, up from $3.8 billion in the fiscal year 2018.
Herbalife Nutrition (HLF)
Herbalife Nutrition is one of the world’s leading nutritional supplement companies. The company also operates a network marketing business model, but there has been a lot of controversy surrounding the company in recent years. This has caused the stock to come under pressure, and shares currently trade at $31.70, having fallen from a high of $64 in February 2018. The company has a market cap of $4.9 billion. Herbalife reported third-quarter revenue of $672 million, up from $646 million in the same period last year. The company also reported a third-quarter net loss of $0.03 per share compared to a loss of $0.12 per share in the previous quarter. Herbalife is expected to report full-year revenue of $2.6 billion, up from $2.5 billion in the fiscal year 2018.
Edgewell Personal Care Company (EPC)
Edgewell Personal Care Company is one of the world’s leading manufacturers of personal care products such as razors, shaving gel, and deodorant. The company also sells peIn additional thenal health products such as oral care items, first aid supplies, and over-the-counter medicines. Edgewell has a market cap of $4.6 billion. The company reported third-quarter revenue of $917 million, up from $873 million in the same period last year. Edgewell also reported a third-quartersaidome of $0.18 per share compared to $0.14 in the same period last year. The company ithe previouspreviouspreviouspected to report full-year revenue of $3.7 billion, up from $3.5 billion in the fiscal year 2018.
As the name suggests, the personal products sector is a business focused on items people use for themselves rather than for sale to other companies. Consumer spending is always an essential part of any economy, regardless of the overall business environment. That makes the personal products sector an attractive place for investors to look for stocks to build a portfolio. When picking stocks in the unique products sector, it’s important to remember that these are consumer-facing stocks, which are more cyclical than other market segments. The best stocks for investors in the personal products sector are those that leaders manage with a proven track record and a clear vision for the company’s future.