Piper Sandler senior research analyst Korinne Wolfmeyer joins Market Domination to discuss the state of beauty retail brands and some of her top picks in the cosmetics industry.

"If a brand doesn't have exposure to the retailers or the areas that are gaining share, then they are going to lose," Wolfmeyer says. She notes that many beauty companies are increasingly offering their products in high-growth avenues, like on Amazon's e-commerce site (AMZN). She adds, "We're seeing the brands shift where they're selling and really going after where those high growth categories and distributors are."

Wolfmeyer points to e.l.f. Beauty (ELF) as one of her top picks in the beauty industry, noting that the company has seen unprecedented growth and strong margins. She believes that investors are undervaluing the international opportunity for the company, as well as its ability to capture the consumer.

"The consumer is becoming less loyal and so they need that newness. They need something constantly innovating and hitting them and really targeting them through all facets of marketing tactics. And that's what e.l.f. does," She explains that the company has "heavy innovation" and "very agile marketing strategies" that make it stand out against its competitors.

E.l.f. Beauty is set to report earnings for its fiscal 2025 first quarter on Thursday, August 8.

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This post was written by Melanie Riehl