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Top Beauty and Cosmetics Stocks in Focus Right Now
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Beauty and Cosmetics have been an integral part of human culture for centuries, evolving from natural ingredients in ancient times to cutting-edge, science-backed formulations today. Over the years, beauty trends have shifted, influenced by societal trends, technological advancements and cultural diversity. Today, the industry stands as a multi-billion-dollar powerhouse, constantly innovating to meet the evolving demands of consumers worldwide. From skincare to makeup and fragrance, cosmetics continue to shape self-expression and personal identity.
One of the most significant shifts in the beauty industry is the growing emphasis on skincare over traditional makeup. Consumers are increasingly prioritizing healthy, radiant skin, fueling demand for products with natural ingredients, clean formulations and dermatologically tested solutions. The rise of K-beauty and J-beauty has also played a role in transforming skincare routines, emphasizing hydration, layering and sun protection. Brands are now focusing on science-driven formulations, offering everything from probiotic-infused serums to blue light protection creams.
Sustainability has also become a defining factor in modern cosmetics. With rising environmental awareness, consumers are scrutinizing ingredients and favoring brands that prioritize transparency and ethical sourcing. Companies like e.l.f. Beauty, Inc. (ELF - Free Report) have capitalized on this shift, blending affordability with cruelty-free, vegan formulations. As regulatory bodies push for greater clarity on labeling and sustainability, brands that align with these expectations are poised for long-term success.
Beyond sustainability, technology is revolutionizing the beauty industry. Artificial Intelligence-powered skincare diagnostics, AR-driven virtual try-ons, and biotech-driven formulations are making beauty more personalized and effective. The rise of dermocosmetics — where beauty meets pharmaceutical-grade skincare — has led to the success of brands backed by dermatological research. The Estee Lauder Companies (EL - Free Report) has expanded into this space, investing in products with strong scientific credibility.
The global cosmetics market size is expected to witness a CAGR of roughly 6.1% from 2024 to 2030. As the beauty industry evolves, companies prioritizing innovation, sustainability, and digital engagement are poised for success in this fast-growing market. To that end, we have identified three standout stocks from our Beauty & Cosmetics Screen that are well-positioned to capitalize on these transformative trends. These include Nu Skin Enterprises, Inc. (NUS - Free Report) , Ulta Beauty, Inc. (ULTA - Free Report) and Sally Beauty Holdings, Inc. (SBH - Free Report) .
Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
3 Beauty and Cosmetics Stocks to Watch
Nu Skin is at the forefront of innovation in the beauty and wellness industry, combining advanced technology, scientific breakthroughs and strategic market expansion to redefine the future of beauty. With a vision to become the world’s leading beauty, wellness, and lifestyle ecosystem, Nu Skin is leveraging its iO intelligent beauty platform while expanding into emerging markets to drive growth. The company’s focus on premium skincare innovations, such as the highly acclaimed ageLOC Tru Face Peptide Retinol Complex, showcases its commitment to cutting-edge formulations. This product utilizes AI-discovered peptide technology to enhance retinol absorption, reinforcing Nu Skin's position as an innovator in the beauty space.
Central to Nu Skin's strategy is its investment in smart beauty technology and personalized wellness solutions. The company has developed an extensive database of over 25 million connected treatments and 100 million data points, which enables more tailored consumer experiences. Building on this data-driven approach, Nu Skin is preparing to launch Prysm iO, a revolutionary device that uses spectral imaging to measure micronutrient absorption in the skin, taking skincare personalization to the next level.
Nu Skin continues to evolve its Rhyz ecosystem, integrating AI-driven data analysis with skincare and wellness offerings to deepen its market penetration and enhance customer experiences. Additionally, the company’s entry into Amazon’s marketplace underscores its adaptive strategy, ensuring greater accessibility while maintaining its premium brand positioning. By balancing innovation, digital transformation, and strategic market expansion, this Zacks Rank #1 (Strong Buy) company is positioning itself for sustainable growth in the evolving landscape of beauty and wellness. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ulta Beauty continues to strengthen its position as a dominant force in the beauty and cosmetics industry through a strategic mix of innovation, exclusive brand partnerships, and advanced digital engagement. With a diverse and ever-growing selection of beauty and wellness products, the company stays ahead of industry trends to meet the evolving preferences of beauty enthusiasts. ULTA has introduced exciting new brands like ILIA Beauty, DIBS Beauty and Oak Essentials while expanding exclusive collaborations with high-profile names like Kylie Jenner. This constant product evolution keeps Ulta Beauty’s offerings fresh and enticing.
A key element of the company’s success is its highly successful loyalty program, which boasts 44.4 million active members, highlighting the company’s ability to drive customer engagement and retention. This impressive membership base has helped establish Ulta Beauty as the ultimate destination for beauty lovers. ULTA is also focused on creating immersive and personalized shopping experiences that differentiate it from competitors. The company has significantly upgraded its digital and omnichannel strategy, with its mobile app now playing a key role in driving e-commerce sales. Innovative features such as the GLAMlab 2.0 virtual try-on tool and AI-powered skin and hair analysis offer customers an interactive and tailored shopping experience. Additionally, Ulta's UB Community, a newly launched digital forum, enables beauty enthusiasts to connect and share their passions.
Even as the beauty industry faces normalization and increased competition, this Zacks Rank #2 (Buy) company is doubling down on its strategic initiatives — enhancing its product offerings, elevating its omnichannel experiences and leveraging digital tools to engage and delight customers.
Sally Beauty is reinforcing its position as a leader in the beauty and cosmetics industry by implementing strategic initiatives focused on product innovation, omnichannel expansion and customer engagement. Its recent store refresh, piloted in select Orlando stores, has been met with strong customer enthusiasm, reinforcing the company’s efforts to modernize its retail presence. In addition, SBH’s digital transformation is driving significant e-commerce growth, supported by successful marketplace partnerships with DoorDash and Instacart. With the company’s proprietary hair color and care products fueling customer retention and loyalty, it remains a dominant force in professional and at-home beauty solutions.
Product innovation continues to be at the forefront of SBH’s growth strategy, with a robust pipeline of new offerings designed to meet evolving consumer needs. The Beauty Systems Group is expanding its distribution of premium haircare brands, including the highly anticipated launch of K18, a biotech-backed brand known for its advanced hair repair treatments.
Meanwhile, Sally Beauty Supply is introducing new color and care products in collaboration with Sauce Beauty, as well as pioneering innovations in hair fragrance with UV protection. The company's Licensed Colors on Demand service is another standout initiative, leveraging online consultations and social media-driven marketing to attract new customers.
SBH’s omnichannel strategy is paying off, with a growing number of customers engaging through digital marketplaces and personalized CRM-driven promotions. The expansion of the Happy Beauty pilot stores in high-traffic locations further underscores the company’s adaptability in meeting consumer demand. This Zacks Rank #3 (Hold) company continues to invest in innovation, digital transformation and operational excellence and is therefore well-positioned to maintain its leadership in the beauty sector while driving long-term value.
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Top Beauty and Cosmetics Stocks in Focus Right Now
Beauty and Cosmetics have been an integral part of human culture for centuries, evolving from natural ingredients in ancient times to cutting-edge, science-backed formulations today. Over the years, beauty trends have shifted, influenced by societal trends, technological advancements and cultural diversity. Today, the industry stands as a multi-billion-dollar powerhouse, constantly innovating to meet the evolving demands of consumers worldwide. From skincare to makeup and fragrance, cosmetics continue to shape self-expression and personal identity.
One of the most significant shifts in the beauty industry is the growing emphasis on skincare over traditional makeup. Consumers are increasingly prioritizing healthy, radiant skin, fueling demand for products with natural ingredients, clean formulations and dermatologically tested solutions. The rise of K-beauty and J-beauty has also played a role in transforming skincare routines, emphasizing hydration, layering and sun protection. Brands are now focusing on science-driven formulations, offering everything from probiotic-infused serums to blue light protection creams.
Sustainability has also become a defining factor in modern cosmetics. With rising environmental awareness, consumers are scrutinizing ingredients and favoring brands that prioritize transparency and ethical sourcing. Companies like e.l.f. Beauty, Inc. (ELF - Free Report) have capitalized on this shift, blending affordability with cruelty-free, vegan formulations. As regulatory bodies push for greater clarity on labeling and sustainability, brands that align with these expectations are poised for long-term success.
Beyond sustainability, technology is revolutionizing the beauty industry. Artificial Intelligence-powered skincare diagnostics, AR-driven virtual try-ons, and biotech-driven formulations are making beauty more personalized and effective. The rise of dermocosmetics — where beauty meets pharmaceutical-grade skincare — has led to the success of brands backed by dermatological research. The Estee Lauder Companies (EL - Free Report) has expanded into this space, investing in products with strong scientific credibility.
The global cosmetics market size is expected to witness a CAGR of roughly 6.1% from 2024 to 2030. As the beauty industry evolves, companies prioritizing innovation, sustainability, and digital engagement are poised for success in this fast-growing market. To that end, we have identified three standout stocks from our Beauty & Cosmetics Screen that are well-positioned to capitalize on these transformative trends. These include Nu Skin Enterprises, Inc. (NUS - Free Report) , Ulta Beauty, Inc. (ULTA - Free Report) and Sally Beauty Holdings, Inc. (SBH - Free Report) .
Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
3 Beauty and Cosmetics Stocks to Watch
Nu Skin is at the forefront of innovation in the beauty and wellness industry, combining advanced technology, scientific breakthroughs and strategic market expansion to redefine the future of beauty. With a vision to become the world’s leading beauty, wellness, and lifestyle ecosystem, Nu Skin is leveraging its iO intelligent beauty platform while expanding into emerging markets to drive growth. The company’s focus on premium skincare innovations, such as the highly acclaimed ageLOC Tru Face Peptide Retinol Complex, showcases its commitment to cutting-edge formulations. This product utilizes AI-discovered peptide technology to enhance retinol absorption, reinforcing Nu Skin's position as an innovator in the beauty space.
Central to Nu Skin's strategy is its investment in smart beauty technology and personalized wellness solutions. The company has developed an extensive database of over 25 million connected treatments and 100 million data points, which enables more tailored consumer experiences. Building on this data-driven approach, Nu Skin is preparing to launch Prysm iO, a revolutionary device that uses spectral imaging to measure micronutrient absorption in the skin, taking skincare personalization to the next level.
Nu Skin continues to evolve its Rhyz ecosystem, integrating AI-driven data analysis with skincare and wellness offerings to deepen its market penetration and enhance customer experiences. Additionally, the company’s entry into Amazon’s marketplace underscores its adaptive strategy, ensuring greater accessibility while maintaining its premium brand positioning. By balancing innovation, digital transformation, and strategic market expansion, this Zacks Rank #1 (Strong Buy) company is positioning itself for sustainable growth in the evolving landscape of beauty and wellness. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ulta Beauty continues to strengthen its position as a dominant force in the beauty and cosmetics industry through a strategic mix of innovation, exclusive brand partnerships, and advanced digital engagement. With a diverse and ever-growing selection of beauty and wellness products, the company stays ahead of industry trends to meet the evolving preferences of beauty enthusiasts. ULTA has introduced exciting new brands like ILIA Beauty, DIBS Beauty and Oak Essentials while expanding exclusive collaborations with high-profile names like Kylie Jenner. This constant product evolution keeps Ulta Beauty’s offerings fresh and enticing.
A key element of the company’s success is its highly successful loyalty program, which boasts 44.4 million active members, highlighting the company’s ability to drive customer engagement and retention. This impressive membership base has helped establish Ulta Beauty as the ultimate destination for beauty lovers. ULTA is also focused on creating immersive and personalized shopping experiences that differentiate it from competitors. The company has significantly upgraded its digital and omnichannel strategy, with its mobile app now playing a key role in driving e-commerce sales. Innovative features such as the GLAMlab 2.0 virtual try-on tool and AI-powered skin and hair analysis offer customers an interactive and tailored shopping experience. Additionally, Ulta's UB Community, a newly launched digital forum, enables beauty enthusiasts to connect and share their passions.
Even as the beauty industry faces normalization and increased competition, this Zacks Rank #2 (Buy) company is doubling down on its strategic initiatives — enhancing its product offerings, elevating its omnichannel experiences and leveraging digital tools to engage and delight customers.
Sally Beauty is reinforcing its position as a leader in the beauty and cosmetics industry by implementing strategic initiatives focused on product innovation, omnichannel expansion and customer engagement. Its recent store refresh, piloted in select Orlando stores, has been met with strong customer enthusiasm, reinforcing the company’s efforts to modernize its retail presence. In addition, SBH’s digital transformation is driving significant e-commerce growth, supported by successful marketplace partnerships with DoorDash and Instacart. With the company’s proprietary hair color and care products fueling customer retention and loyalty, it remains a dominant force in professional and at-home beauty solutions.
Product innovation continues to be at the forefront of SBH’s growth strategy, with a robust pipeline of new offerings designed to meet evolving consumer needs. The Beauty Systems Group is expanding its distribution of premium haircare brands, including the highly anticipated launch of K18, a biotech-backed brand known for its advanced hair repair treatments.
Meanwhile, Sally Beauty Supply is introducing new color and care products in collaboration with Sauce Beauty, as well as pioneering innovations in hair fragrance with UV protection. The company's Licensed Colors on Demand service is another standout initiative, leveraging online consultations and social media-driven marketing to attract new customers.
SBH’s omnichannel strategy is paying off, with a growing number of customers engaging through digital marketplaces and personalized CRM-driven promotions. The expansion of the Happy Beauty pilot stores in high-traffic locations further underscores the company’s adaptability in meeting consumer demand. This Zacks Rank #3 (Hold) company continues to invest in innovation, digital transformation and operational excellence and is therefore well-positioned to maintain its leadership in the beauty sector while driving long-term value.