Top 3 Picks
2026 Outlook
The cosmetics sector is expected to grow at a CAGR of around 5-7% through 2026, fueled by innovations in clean beauty, digital marketing, and personalized products that cater to evolving consumer preferences. Emerging markets in Asia and Latin America will drive much of this expansion, while challenges like supply chain disruptions and regulatory pressures on ingredients could temper growth. Overall, the sector's outlook remains positive, with opportunities in e-commerce integration and sustainability initiatives positioning it for sustained profitability by 2026.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
Interparfums, Inc. Common Stock
|
65.5 | $85.65 | $3.0B |
|
2
|
e.l.f. Beauty, Inc.
|
59.0 | $76.84 | $7.7B |
|
3
|
Kenvue Inc.
|
58.9 | $16.82 | $30.4B |
|
4
|
The Estee Lauder Companies Inc. Class A
|
58.4 | $108.16 | $31.1B |
|
5
|
Colgate-Palmolive Company
|
58.2 | $76.93 | $63.9B |
|
6
|
COTY INC
|
58.2 | $3.15 | $3.5B |
|
7
|
Edgewell Personal Care Company
|
57.5 | $16.81 | $970M |
|
8
|
United-Guardian, Inc.
|
57.5 | $6.19 | $35M |
|
9
|
Olaplex Holdings, Inc. Common Stock
|
52.2 | $1.27 | $867M |
|
10
|
cbdMD, Inc. Common Stock
|
52.1 | $1.12 | $10M |
|
11
|
AXIL Brands, Inc.
|
50.5 | $6.26 | $40M |
|
12
|
Solesence, Inc. Common Stock
|
47.4 | $1.58 | $228M |
|
13
|
Waldencast plc Class A Ordinary Share
|
38.6 | $1.62 | $239M |
In-Depth Analysis: Top Cosmetics Stocks
IPAR
Interparfums Inc operates in the fragrance business and produces and distributes a wide array of prestige fragrance and fragrance-related products. It sells its product under the brand which includes Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Moncler, Montblanc, Rochas and Van Cleef & Arpels. The company operates in two operating segments namely European based operations, SA, and …
Interparfums matters in the Cosmetics sector as a leading player in the prestige fragrance market, leveraging iconic brands like Coach, Jimmy Choo, and Montblanc to capture high-end consumer demand and drive premium revenue streams. This focus on luxury fragrances differentiates it from competitors, positioning the company to benefit from growing trends in personalized and exclusive beauty products.
Interparfums exhibits strong financial health with a profit margin of 11.2% and an ROE of 19.8%, indicating efficient operations and effective equity utilization that supports sustained earnings. However, the modest revenue growth of 1.2% highlights potential vulnerabilities in top-line expansion, which could be addressed through brand portfolio enhancements.
With a P/E ratio of 16.7, IPAR offers an attractive valuation for investors seeking growth in the luxury cosmetics space, especially as the Tradestie Score of 65.5 suggests moderate upside potential. By 2026, the company's strong ROE of 19.8% and diverse brand lineup, including Jimmy Choo and Lacoste, position it to capitalize on rebounding global fragrance demand driven by post-pandemic luxury spending. Additionally, ongoing innovation in prestige products could enhance market share and deliver shareholder returns amid sector recovery.
ELF
e.l.f. Beauty Inc is a multi-brand beauty company that offers inclusive, accessible, clean, vegan, and cruelty-free cosmetics and skin care products. The Company's mission is to make beauty accessible to every eye, lip, face, and skin concern. The company offers cosmetic accessories for women, which include eyeliner, mascara, false eyelashes, lipstick, foundation for the face, moisturizer, cleanser, and other tools …
e.l.f. Beauty matters in the Cosmetics sector as it pioneers affordable, clean, vegan, and cruelty-free products that align with rising consumer demands for ethical and inclusive beauty options, differentiating it from traditional competitors. Its 14.2% revenue growth underscores its market relevance and ability to capture a broad demographic seeking accessible beauty solutions.
ELF's 5.9% profit margin reflects moderate profitability in a competitive sector, potentially due to investments in product innovation and marketing, while its 8.8% ROE indicates efficient use of equity to generate returns. The 14.2% revenue growth demonstrates strong financial health and scalability, offsetting the high 55.6 P/E ratio that signals investor expectations for future earnings expansion.
ELF's 14.2% revenue growth trajectory suggests continued market share gains in the cosmetics sector by 2026, driven by its focus on affordable and ethical products amid shifting consumer preferences. The company's high P/E ratio of 55.6 indicates strong growth potential, as it capitalizes on trends like clean beauty and inclusivity to outpace industry averages. Investors should consider ELF for its positioning to benefit from expanding global demand for accessible cosmetics, potentially leading to enhanced profitability and stock appreciation by 2026.
KVUE
Kenvue is the world's largest pure-play consumer health company by sales, generating over $15 billion in annual revenue. Formerly known as Johnson & Johnson's consumer segment, Kenvue spun off and went public in May 2023. It operates in a variety of silos within consumer health, such as cough, cold and allergy care, pain management, face and body care, and oral …
Kenvue, as the world's largest pure-play consumer health company with over $15 billion in annual revenue, significantly influences the cosmetics sector through its extensive portfolio of personal care brands that intersect with beauty and wellness products. Its 2023 spin-off from Johnson & Johnson establishes it as a focused leader, driving innovation in consumer health segments like cough and cold remedies that complement cosmetics demand.
Kenvue's profit margin of 9.6% reflects solid operational efficiency in a competitive sector, while its ROE of 13.5% demonstrates effective equity utilization for returns. However, the -3.5% revenue growth highlights recent challenges in market expansion, though the P/E ratio of 23.1 suggests the stock is reasonably valued compared to peers.
By 2026, Kenvue's established brands and $15 billion revenue base position it for potential recovery from -3.5% growth, leveraging operational efficiencies as a standalone entity to capture market share in expanding consumer health segments. The Tradestie Score of 58.9/100 indicates moderate upside potential, with opportunities for innovation in personal care to drive earnings growth. At a P/E of 23.1, the stock offers an attractive entry for investors anticipating sector rebound and long-term profitability improvements.
EL
Estée Lauder is a leader in the global prestige beauty market, participating across skin care (49% of fiscal 2025 sales), makeup (29%), fragrance (17%), and hair care and others (5%), with top-selling brands such as Estée Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins. The firm operates in more than 150 countries, generating 31% of …
Estée Lauder is a leading force in the global prestige beauty market, holding a dominant position with its extensive portfolio of top brands like Estée Lauder and Clinique, which drive innovation and consumer loyalty across key segments such as skin care (49% of fiscal 2025 sales) and makeup (29%). This dominance allows the company to influence industry trends and maintain a significant share in the premium cosmetics sector, making it a benchmark for quality and market expansion.
Estée Lauder's negative profit margin of -6.4% and return on equity of -20.7% highlight current challenges in profitability and financial efficiency, potentially due to market pressures or operational costs. However, the company's 3.6% revenue growth demonstrates underlying business resilience and potential for improved financial health as it leverages its strong brand portfolio.
Estée Lauder's 3.6% revenue growth and leadership in high-growth areas like skin care (49% of sales) position it for a strong rebound in 2026, amid recovering global beauty markets and increasing demand for premium products. The company's diverse brand lineup, including M.A.C and La Mer, supports ongoing innovation and market share expansion, potentially driving earnings recovery. With a Tradestie Score of 58.4, indicating moderate upside potential, investors could benefit from the sector's projected growth as consumer spending normalizes.
CL
Since its founding in 1806, Colgate-Palmolive has grown into a leading player in the household and personal care industry. In addition to its namesake oral care line (which accounts for north of 40% of its total sales), the firm manufactures shampoos, shower gels, deodorants, and home care products that are sold in over 200 countries. International sales account for about …
Colgate-Palmolive matters in the Cosmetics sector as a leading provider of personal care products, with its oral care line accounting for over 40% of sales, establishing it as a dominant force in hygiene and beauty essentials. Its diversified portfolio, including shampoos, shower gels, and deodorants, reinforces its market influence and innovation in everyday consumer goods.
Colgate-Palmolive's 14.5% profit margin indicates strong operational efficiency in generating profits from sales, while its exceptional 293.6% ROE highlights superior returns on shareholder equity, reflecting effective capital management. However, the 1.9% revenue growth suggests limited top-line expansion, balanced by a P/E ratio of 21.8 that positions the company at a reasonable valuation relative to earnings.
Colgate-Palmolive's established brand and product diversification, including its core oral care segment, position it for sustained demand in the growing personal care market by 2026. The company's remarkable 293.6% ROE signals potential for high returns on investments, supporting long-term shareholder value amid economic stability. Additionally, with a P/E ratio of 21.8, the stock offers an attractive entry point for investors seeking reliable growth in a sector with steady consumer needs.
COTY
Coty is a global beauty maker that generates 65% of sales from prestige beauty products (primarily fragrances) and 35% from mass makeup, skin care, and fragrance. For the fragrance business, Coty licenses luxury and high-end brands including Gucci, Burberry, Hugo Boss, Davidoff, and Calvin Klein. In contrast, its consumer cosmetics business focuses on acquired mass brands such as CoverGirl, Max …
Coty stands out in the cosmetics sector as a leading global beauty company, with 65% of its sales derived from prestige fragrances under licenses from high-end brands like Gucci, Burberry, and Calvin Klein, positioning it as a key player in luxury beauty innovation. This focus on premium products and brand partnerships enables Coty to capture significant market share in the competitive fragrance segment, influencing industry trends and consumer preferences.
Coty's profitability is currently strained, evidenced by a negative profit margin of -6.6% and a return on equity of -8.6%, indicating operational challenges and potential inefficiencies in cost management. Despite a revenue growth decline of -5.6%, the Tradestie Score of 58.2 suggests moderate financial stability, highlighting the need for strategic improvements to enhance long-term health.
By 2026, Coty's extensive licensing portfolio with brands like Hugo Boss and Davidoff could capitalize on the projected growth in the global cosmetics market, potentially reversing the -5.6% revenue decline through increased demand for prestige fragrances. The company's diversification into mass makeup and skin care, comprising 35% of sales, positions it to benefit from e-commerce expansion and post-pandemic consumer spending recovery. Furthermore, ongoing cost efficiencies and brand innovations may improve profitability metrics, making Coty an attractive buy for investors seeking exposure to the recovering beauty sector.
EPC
Edgewell Personal Care Co is a personal-care company. The operating segments of the company include Wet Shave, Sun and Skin Care and Feminine Care. Some of the brands offered by the company include Edge, Skintimate, Personna, Schick, Carefree, Playtex, Banana Boat and Hawaiian Tropic. It derives a majority of its revenue from the United States.
Edgewell Personal Care Company matters in the cosmetics sector as a leading provider of essential personal care products across Wet Shave, Sun and Skin Care, and Feminine Care segments, with iconic brands like Schick and Banana Boat that hold significant market share in shaving and sun protection categories.
Edgewell's profitability is weak, evidenced by a low profit margin of 1.1% and ROE of 1.6%, indicating limited efficiency in generating profits from sales and equity; however, its 3.8% revenue growth suggests modest financial stability amid competitive pressures.
With a 3.8% revenue growth rate, Edgewell is positioned for potential expansion in high-demand areas like sun and skin care, driven by increasing consumer awareness of UV protection and personal hygiene trends by 2026. The company's established brands, such as Hawaiian Tropic and Schick, provide a competitive edge for market share gains in a growing cosmetics sector. Additionally, the stock's P/E ratio of 31.8 reflects investor optimism for future earnings growth, making it an attractive buy for those anticipating sector recovery and innovation.
UG
United-Guardian Inc manufactures and markets cosmetic ingredients, pharmaceuticals, medical lubricants, and specialty industrial products. Its product portfolio includes Klensoft, Deselex, Renacidin, Lubrajel Fluid. The company's pharmaceutical products are sold to and distributed by full-line drug wholesalers throughout the United States. Its medical and specialty industrial products are sold directly by the company to the end-users of those products or, in …
United-Guardian matters in the Cosmetics sector as a key manufacturer of essential ingredients like Klensoft and Deselex, which enhance product formulations and address consumer demands for safe, effective personal care items. Its diversified portfolio, including pharmaceuticals and medical lubricants, provides a competitive edge by enabling cross-sector synergies and innovation in cosmetic applications.
United-Guardian's 19.5% profit margin and 17.8% ROE reflect strong profitability and efficient use of shareholder equity, indicating solid financial health despite recent challenges. However, the -26.0% revenue growth highlights potential short-term headwinds, balanced by a reasonable 14.3 P/E ratio that suggests the stock is attractively valued relative to earnings.
By 2026, United-Guardian's robust 19.5% profit margin and 17.8% ROE position it for potential revenue recovery as the cosmetics sector rebounds from current downturns. The company's innovative products like Klensoft and Deselex could capitalize on growing demand for advanced cosmetic ingredients, driving market share gains. Additionally, with a 14.3 P/E ratio, the stock appears undervalued, offering investors an opportunity for significant capital appreciation amid sector growth.
OLPX
Olaplex Holdings Inc is a science-enabled, technology-driven beauty company. It offers science-backed solutions that improve hair health. It identifies the majority of consumers' relevant haircare concerns in collaboration with the community of professional hairstylists and consumers and strives to address them through its proprietary technology and innovation capabilities. It offers products through an omnichannel platform that serves professional, specialty retail, …
Olaplex Holdings Inc. matters in the cosmetics sector due to its innovative, science-driven approach to hair health, offering patented bond-building technology that addresses common haircare concerns through collaboration with professional hairstylists and consumers. This positions the company as a key player in the premium haircare market, differentiating it from competitors by emphasizing efficacy and professional endorsement in a sector valued at over $500 billion globally.
Olaplex's profitability is weak, evidenced by a negative profit margin of -1.2% and a return on equity of -0.6%, indicating the company is operating at a loss and failing to generate returns for shareholders. The -3.8% revenue growth further highlights financial strain, suggesting challenges in maintaining sales momentum amid potential market or operational issues.
By 2026, Olaplex's science-backed innovations and strong community ties with hairstylists could capitalize on the growing demand for professional-grade haircare products, potentially reversing the -3.8% revenue decline through new product launches and market expansion. The company's Tradestie Score of 52.2 signals moderate investment potential, especially if it leverages its technology to gain market share in the expanding cosmetics sector projected to grow at 4-5% annually. Investors may find value in the stock as operational efficiencies and strategic partnerships improve profitability from its current negative levels.
YCBD
cbdMD Inc is a United States based company. It owns and operates the consumer hemp-based cannabidiol (CBD) brand, cbdMD, Paw CBD as well as ATRx Labs brand of functional mushrooms. The company's product categories include CBD tinctures, CBD gummies, CBD topicals, CBD capsules, CBD oils, and CBD pet products. The firm distributes its products through an e-commerce website, wholesalers, and …
cbdMD Inc. matters in the Cosmetics sector due to its leadership in hemp-based CBD products, such as topicals and oils, which cater to the growing demand for natural wellness solutions in skincare, with the global CBD market projected to exceed $20 billion by 2026. Its expansion into pet products like Paw CBD further diversifies its footprint, positioning it as an innovator in health-focused cosmetics amid rising consumer interest in CBD-infused formulations.
cbdMD's negative profit margin of -8.0% and ROE of -33.1% highlight persistent unprofitability and poor equity efficiency, exacerbated by a -11.0% revenue decline, indicating financial challenges in a competitive market. However, the low P/E ratio of 1.4 suggests the stock may be undervalued, potentially offering upside if operational improvements are achieved.
By 2026, cbdMD could benefit from the projected CBD market growth to over $20 billion, allowing its diverse product line—including tinctures, gummies, and topicals—to capture increasing consumer demand in wellness cosmetics. The company's low P/E ratio of 1.4 presents an attractive valuation for investors, especially if revenue stabilizes or rebounds from its -11.0% decline through strategic expansions like the ATRx Labs functional mushrooms brand.
Methodology
Stocks are ranked using the Tradestie Score, a proprietary 0-100 rating that combines fundamental quality (profitability, balance sheet strength), growth metrics (revenue and earnings growth), valuation (P/E, PEG ratio), and momentum factors. Scores are updated daily based on the latest market data. Learn more about our methodology.