Hot Picks: Beauty stocks
Despite challenging economic times, the beauty industry is showing signs of resilience and growth, according to one analyst.
In an interview with BNN Bloomberg’s Paul Bagnell on Wednesday, Korinne Wolfmeyer, senior equity research analyst at Piper Sandler, said the beauty sector held up very well throughout the pandemic and continues to outperform even now. Wolfmeyer looks for stocks within the sector that show good margins and stand to benefit from China’s reopening amid a continued rise in self-care practices.
“We were locked down in our homes for years really, with access money (should this be excess?) to spend on making ourselves feel good. This is a type of expenditure where once you start, it is really hard to stop, and it really does become more of a staple,” Wolfmeyer said.
She believes the demand for affordable luxuries, such as makeup and beauty, will continue as consumers look to feel good no matter the economic backdrop.
Wolfmeyer recommended Beauty Health Company (SKIN), e.l.f. Beauty Inc. (ELF) and The Estée Lauder Companies Inc. (EL), as her three hot picks in the beauty industry.
She, her family, her firm and her investment banking clients do not own any of the stocks mentioned above.
Check out the full video at the top of the article to learn more.