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Hopes of a less hawkish FED could boost the Consumers Staples sector with several stocks among the Zacks Cosmetic Industry standing out in particular.
With the Cosmetic Industry in the top 36% of over 250 Zacks industries here are three stocks investors may want to consider buying.
e.l.f. Beauty (ELF)
Sporting a Zacks Rank #1 (Strong Buy) Elf Beauty stock is intruiging at the moment. Elf Beauty operates as a cosmetic company that primarily offers face makeup, eye makeup, lip products, nail products, and cosmetic kits.
Trading at $84 per share, ELF stock is up a very impressive +47% year to date to easily top the S&P 500’s +7% and the Cosmetics & Toiletries Markets +1%. The strong performance could continue as Elf’s fiscal 2023 and FY24 EPS estimates have climbed 27% over the last quarter respectively.
Even better, Elf’s earnings are now projected to soar 69% this year at $1.42 per share compared to EPS of $0.84 in 2022. Plus, fiscal 2024 EPS is forecasted to rise another 11%.
Image Source: Zacks Investment Research
Inter Parfums (IPAR)
Another Zacks Cosmetic Industry stock investors may want to consider buying at the moment is Inter Parfums which also sports a Zacks Rank #1 (Strong Buy).
Inter Parfums is engaged in the manufacturing, distribution and marketing of a wide rang of fragrances and related products. Rising earnings estimates are a good sign that Inter Parfums stock could continue rising this year.
Trading at $139, shares of IPAR are up +43% YTD to largely outperform the benchmark and the Cosmetic & Toiletries Market. Fiscal 2023 earnings estimates have now gone up 7% over the last 60 days with FY24 EPS estimates up 11%. Inter Platform’s earnings are now expected to be virtually flat this year and then jump 15% in FY24 at $4.62 per share.
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L’Oreal (LRLCY)
L’Oréal is one of the most popular names among the cosmetics space and its stock currently has a Zacks Rank #2 (Buy). Being a staple among cosmetic products for over a century, L’Oréal stock is up +26% this year to outpace the S&P 500 and the Cosmetics & Toiletries Market.
Fiscal 2023 earnings estimates have risen 6% over the last 90 days with FY24 EPS estimates rising 8%. Trading at $89 per share, L’Oréal’s earnings are now expected to be up 6% this year and jump another 9% in FY24 at $2.73 per share.
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Takeaway
Although investors may be paying a slight premium for these cosmetic retailers the rising earnings estimates and possibility of easing inflation could continue benefiting these companies.