Top 10 Beauty & Cosmetic Stocks for 2025: Glam Portfolio Picks

At GLHR Investing, we’re spotlighting the top 10 beauty and cosmetic stocks for 2025, perfect for investors looking to capitalize on a $509 billion industry thriving on innovation, sustainability, and digital trends. Despite economic challenges—Trump’s tariffs, 3% inflation, and a volatile S&P 500 (SPY at $513.88, down 4.8% YTD)—beauty remains resilient, driven by consumer demand for skincare, makeup, and wellness. These stocks, spanning global giants and disruptive newcomers, offer growth and income in a dynamic market. Here’s our analysis of the best beauty and cosmetic stocks for 2025, why they shine, and how to invest in today’s economy.

Economic Context (May 29, 2025):
- Market Volatility: SPY’s 15.6% YTD drop and May’s 0.87% decline (VIX ~35) reflect tariff-driven uncertainty, with tech down 2% and defensive sectors (utilities, staples) up 1–2%, per prior analyses. Beauty stocks, as consumer staples, show recession resistance, per web data.
- Tariffs: Trump’s 25% Canada/Mexico and 125% China tariffs, with a 50% China threat (May 6), raise import costs (e.g., 25% on South Korean K-beauty), per web data. The April 8 tariff pause (ends July 7) and U.S.-UK trade deal (May 8) ease pressures, per prior analyses.
- Inflation and Rates: 3% inflation with 6.7% expectations and Fed rates at 4.25–4.5% (no cuts, per CME FedWatch) curb spending (down 13%), but beauty’s necessity (e.g., 6–12 daily products) sustains demand, per web data.
- Recession Risk: A 60% recession probability and -0.3% Q1 GDP growth signal caution, but beauty’s $677 billion projected market by 2025 (6.1% CAGR) supports growth, per web data.
- Selection Criteria: Stocks chosen from NYSE/Nasdaq for high market cap, revenue growth, sustainability focus, digital innovation, and tariff resilience, based on web data (e.g., Motley Fool, Nasdaq) and X posts (e.g., @TheStockBro). Preference for firms with dividends where applicable, per your high-dividend interest.
Top 10 Beauty & Cosmetic Stocks for 2025:
- e.l.f. Beauty, Inc. (ELF):
  - Price: ~$125, Yield: 0%, YTD: Up 40% from ~$89, per web data.
  - Why Top Pick: Affordable, vegan, cruelty-free cosmetics targeting Gen Z, with 23 quarters of market share and sales growth (40% revenue jump Q2 2025), per web data. Strong e-commerce and social media presence (TikTok-driven), per web data.
  - Economic Fit: Low price points counter spending cuts (13%), with domestic focus mitigating tariffs, per prior analyses. High margins (71% gross) despite marketing spend, per web data.
  - Investment Case: Zacks Rank #1 (Strong Buy), forward P/E ~30, expensive but justified by growth, per Motley Fool. Analyst targets ~$150, per web data.
  - Buy/Hold: Buy on dips near $110 for explosive growth, per X post. Risk: Near-peak valuation, per web data.
- The Estée Lauder Companies Inc. (EL):
  - Price: ~$85, Yield: 3.1%, YTD: Down 25% from ~$113, per web data.
  - Why Top Pick: Prestige beauty leader with brands like La Mer, Clinique, and Aveda, holding 52% skincare sales, per web data. Biotech Hub in Belgium boosts innovation, per web data.
  - Why Down: 2% revenue decline in FY 2024 (ended June 30) due to China slowdown and dividend cut, per web data. Profit recovery plan targets margin growth, per web data.
  - Economic Fit: Global presence exposes it to China tariffs (125%), but premiumization trends and U.S. demand (6–12 daily products) support recovery, per web data.
  - Investment Case: Zacks Rank #3 (Hold), forward P/E ~20, undervalued with 7% CAGR forecast, per Morningstar. Analyst targets ~$100, per web data.
  - Buy/Hold: Buy on dips near $80 for turnaround potential by H2 2025, per prior analyses. Risk: China stabilization delays, per web data.
- Ulta Beauty, Inc. (ULTA):
  - Price: ~$380, Yield: 0%, YTD: Down 5% from ~$400, per web data.
  - Why Top Pick: Largest U.S. beauty retailer with 1,400 stores, offering makeup, skincare, and salon services, per web data. GLAMlab 2.0 (virtual try-ons) and UB Community drive engagement, per web data.
  - Why Down: Tariff costs (25% on K-beauty imports) and competition from Amazon (41% online sales) pressure margins, per web data. Q4 2024 sales up 5%, per web data.
  - Economic Fit: Omnichannel strategy counters spending cuts, with domestic focus reducing tariff risks, per prior analyses. Wellness category expansion adds growth, per web data.
  - Investment Case: Zacks Rank #2 (Buy), forward P/E ~15, undervalued, per Nasdaq. Analyst targets ~$420, per web data.
  - Buy/Hold: Buy on dips near $360 for retail dominance, per web data. Risk: Economic sensitivity, per web data.
- Coty, Inc. (COTY):
  - Price: ~$8, Yield: 0%, YTD: Down 20% from ~$10, per web data.
  - Why Top Pick: Global beauty firm with luxury (Gucci, Kylie Cosmetics) and mass-market brands, per web data. 18% revenue growth in Q1 FY 2025, with social media fueling turnaround, per web data.
  - Why Down: Struggles post-2015 P&G acquisition and China slowdown, with debt reduction from Wella sale ongoing, per web data. Tariff costs (K-beauty imports) add pressure, per web data.
  - Economic Fit: Prestige segment growth (3–3.5% in developed markets) offsets tariff risks, per web data. Social commerce (6.2% of sales) drives demand, per web data.
  - Investment Case: Zacks Rank #3 (Hold), forward P/E ~10, undervalued with $13 analyst targets, per RBC Capital.
  - Buy/Hold: Hold if owned for turnaround; buy on dips near $7 for recovery, per web data. Risk: Debt and competition, per web data.
- Nu Skin Enterprises, Inc. (NUS):
  - Price: ~$10, Yield: 2.4%, YTD: Down 30% from ~$14, per web data.
  - Why Top Pick: Science-based skincare and wellness firm with iO intelligent beauty platform, per web data. Amazon marketplace entry boosts accessibility, per web data.
  - Why Down: Tariff costs (25% on Asian imports) and spending cuts (13%) hit Q4 2024 sales, per web data. Rhyz ecosystem expansion faces competition, per web data.
  - Economic Fit: AI-driven personalization counters recession risks, with domestic focus reducing tariff exposure, per prior analyses.
  - Investment Case: Zacks Rank #1 (Strong Buy), forward P/E ~8, undervalued with $12 targets, per web data. Sustainable dividends (payout ratio ~50%), per web data.
  - Buy/Hold: Buy on dips near $9 for AI-driven growth, per web data. Risk: Emerging market slowdown, per web data.
- Sally Beauty Holdings, Inc. (SBH):
  - Price: ~$12, Yield: 0%, YTD: Down 10% from ~$13, per web data.
  - Why Top Pick: Specialty retailer for professional and retail beauty products, with store refreshes and DoorDash partnerships, per web data. Q4 2024 e-commerce growth up 10%, per web data.
  - Why Down: Tariff costs on imports and spending cuts (13%) pressure margins, per web data. Retail competition from Ulta, per prior analyses.
  - Economic Fit: Professional segment (salons) and digital transformation ensure resilience, per web data. Domestic focus mitigates tariffs, per web data.
  - Investment Case: Zacks Rank #2 (Buy), forward P/E ~7, undervalued with $15 targets, per web data.
  - Buy/Hold: Buy on dips near $11 for retail recovery, per web data. Risk: Inventory management, per web data.
- The Procter & Gamble Company (PG):
  - Price: ~$165, Yield: 2.4%, YTD: Up 5% from ~$157, per web data.
  - Why Top Pick: Consumer goods giant with beauty brands (Olay, SK-II), per web data. Q4 2024 beauty segment revenue up 3%, per web data.
  - Why Up: Domestic production and essential products (e.g., skincare) counter tariffs and spending cuts, per prior analyses. Strong brand loyalty, per web data.
  - Economic Fit: Recession-resistant staples and global scale reduce tariff impact, per web data. Sustainable dividends (payout ratio ~60%), per Morningstar.
  - Investment Case: Forward P/E ~25, fairly valued with $180 targets, per web data. Stable income play, per Motley Fool.
  - Buy/Hold: Hold if owned for steady dividends; buy on dips near $160 for defensive exposure, per prior analyses.
- L’Oréal S.A. (LRLCY):
  - Price: ~$85, Yield: 1.6%, YTD: Flat, per web data.
  - Why Top Pick: World’s largest beauty firm with Lancôme, Maybelline, and 40% skincare sales, per web data. Q1 2025 e-commerce sales up 10%, per web data.
  - Why Stable: Global distribution and eco-refill packaging align with sustainability trends (55% pay more for eco-friendly), per web data.
  - Economic Fit: Tariff exposure (Asia-Pacific 40% market) offset by premiumization and digital growth, per prior analyses.
  - Investment Case: Forward P/E ~30, premium but justified by 8% CAGR forecast, per Morningstar. Analyst targets ~$95, per web data.
  - Buy/Hold: Hold if owned for long-term growth; buy on dips near $80 for global leadership, per web data.
- Olaplex Holdings, Inc. (OLPX):
  - Price: ~$2, Yield: 0%, YTD: Down 50% from ~$4, per web data.
  - Why Top Pick: Premium haircare brand with salon and retail channels, per web data. Q4 2024 revenue flat, but new products target growth, per web data.
  - Why Down: Weak demand post-COVID and competition from K-beauty (25% tariff risk) hurt sales, per web data. Cowen downgrade (March 2025) cited soft trends, per web data.
  - Economic Fit: Niche focus and domestic sales mitigate tariffs, but recession risks (60%) challenge growth, per prior analyses.
  - Investment Case: Forward P/E ~5, deeply undervalued with $3 targets, per web data. High-risk, high-reward, per Motley Fool.
  - Buy/Hold: Buy on dips near $1.50 for speculative recovery, per web data. Risk: Continued demand weakness, per web data.
- Beiersdorf AG (BDRFY):
  - Price: ~$30, Yield: 0.7%, YTD: Up 10% from ~$27, per web data.
  - Why Top Pick: German skincare leader with NIVEA and Eucerin, reporting $10.3 billion in 2023 sales, per web data. Strong in men’s care (8.6% CAGR to 2030), per web data.
  - Why Up: Domestic production and eco-friendly products align with sustainability trends, countering tariffs, per web data.
  - Economic Fit: Recession-resistant skincare (22% market share) and global reach ensure stability, per prior analyses.
  - Investment Case: Forward P/E ~20, fairly valued with $35 targets, per web data. Modest dividend adds appeal, per web data.
  - Buy/Hold: Buy on dips near $28 for stable growth, per web data. Risk: EU ingredient restrictions, per web data.
Investor Considerations:
- Why These Stocks Stand Out:
  - Market Leadership: ELF, EL, and LRLCY lead with strong brands and innovation (e.g., ELF’s 40% growth, EL’s Biotech Hub), per web data.
  - Consumer Trends: Skincare (22% market share), sustainability (55% eco-premium demand), and e-commerce (20% of sales) drive growth, per web data.
  - Resilience: Beauty’s recession resistance (6–12 daily products) and digital shift (41% online sales) counter economic headwinds, per web data.
  - Growth Potential: $677 billion market by 2025 (6.1% CAGR) supports long-term upside, especially for ELF, ULTA, and NUS, per web data.
- Economic Challenges:
  - Tariff Risks: EL, COTY, and OLPLX face 25–125% tariffs on Asian imports (e.g., K-beauty), raising costs 10–20%, per J.P. Morgan and web data. Domestic-focused PG and BDRFY are safer, per prior analyses.
  - Recession Impact: 13% spending cuts and 60% recession risk may hit discretionary purchases, but skincare and affordable brands (ELF) remain stable, per web data.
  - High Valuations: ELF (P/E ~30) and VST (165% above fair value) carry premium risks, per Morningstar and prior analyses.
- Investment Strategy:
  - Buy: ELF, ULTA, NUS, PFE, and BDRFY for growth and value, leveraging affordability, innovation, and sustainability, per web data. VZ for high-yield stability, per prior analyses. Target dips (e.g., ELF <$110, ULTA <$360) for value, per Trade That Swing.
  - Hold: EL, COTY, PG, LRLCY, and OLPLX for long-term potential, but monitor tariff impacts and China recovery (H2 2025), per web data.
  - ETFs: Consider iShares U.S. Consumer Staples ETF (IYK, 2% yield) for diversified beauty exposure, per Seeking Alpha.
  - Allocation: Allocate 5–10% to beauty stocks, balancing growth (ELF, ULTA) and income (VZ, PG), with 3–5% in gold (GLD, +3%) or utilities (XLU, +1%) to hedge volatility, per prior analyses.
  - Timing: Buy on SPY dips near $500, per Trade That Swing. Dollar-cost average to manage VIX (~35), per Schwab.
  - Monitor: Q2 earnings (July 2025), U.S.-China trade talks (ongoing), June 17–18 FOMC meeting, and K-beauty import trends, per NerdWallet. Track social commerce growth (6.2% sales), per web data.
- Risks:
  - Tariff escalations (July 7) could raise costs 10–20%, hitting EL, COTY, and OLPLX, per J.P. Morgan.
  - A 60% recession risk may curb premium beauty spending, per prior analyses.
  - Brand loyalty decline (20% drop) and competition from niche brands (6.9% growth) challenge legacy firms, per web data.
Why It Matters: The $509 billion beauty and cosmetic market in 2025, growing at 6.1% CAGR, offers investors a resilient sector driven by skincare, sustainability, and digital innovation. Despite SPY’s 15.6% YTD drop and tariff volatility, stocks like e.l.f. Beauty (+40% YTD), Ulta Beauty, and L’Oréal shine with growth and income potential. With a 60% recession risk, selective buys (ELF, ULTA) and holds (EL, PG) balance risk and reward for beauty enthusiasts. At GLHR Investing, we’re here to help you glam up your portfolio, navigating 2025’s economic challenges with strategic picks.