Invest in makeup stocks

If you’re looking for a colourful addition to your investment portfolio, then makeup stocks might fit the bill. Makeup stocks are part of a wider category of stocks in cosmetic companies that produce makeup, lotions, perfumes and hair products.

A lot of makeup companies are owned by larger parent companies, so it will take a bit of research to find out how to invest in makeup stocks.

How to invest in makeup stocks

1. Choose a share dealing platform. We’ve listed some below for you to compare. As a lot of cosmetics companies are based in the US, you’ll need to choose a provider that lets you trade US stocks.
2. Open an account. You may need to provide details about your employment, your national insurance number and your address.
3. Fund your account. Some providers let you fund your account with a debit card, by bank transfer or by Apple or Google Pay.
4. Choose your makeup stock and search for it. See some of the stocks listed below, make sure you look at the some of the key financials like its performance, market capitalization and price-to-earnings (P/E) ratio.
5. Submit an order. Choose how many you want to buy and review the price. When you’re happy, hit buy.
6. Keep an eye on your investments. It’s as easy as that!

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List of makeup stocks

Here are some examples of makeup stocks or parent companies of makeup brands.

• Beiersdorf Aktiengesellschaft (BDRFY.US)

  Beiersdorf Aktiengesellschaft offers its products in the area of skin and body care under the NIVEA, Eucerin, La Prairie, Hansaplast, Elastoplast, Labello, Aquaphor, atrix, Florena, 8×4, Gammon, Coppertone, Tesa, Florena Fermented Skincare, Skin Stories, Hidrofugal, and Maestro brands.

  Get more detailed information and learn how to buy Coty shares

• Biofrontera AG (BFRA.US)

  Biofrontera AG is a biopharmaceutical company that develops pharmaceutical products for the treatment of dermatological conditions caused by exposure to sunlight. Its principal product is Ameluz, a prescription drug for the treatment of lesion-directed and field-directed actinic keratosis.

  Get more detailed information and learn how to buy Coty shares

• Coty (COTY.US)

  Coty Inc manufactures, markets, distributes, and sells beauty products worldwide. The company provides prestige fragrances, skin care, and color cosmetics products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Alexander McQueen, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lacoste, Lancaster, Marc Jacobs, Miu Miu, Nikos, philosophy, and Tiffany & Co. brands.

  It also offers mass color cosmetics, fragrance, skin care, and body care products primarily through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers under the Adidas, Beckham, Biocolor, Bozzano, Bourjois, Bruno Banani, CoverGirl, Enrique, Jovan, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, Stetson, and 007 James Bond brands.

  Get more detailed information and learn how to buy Coty shares

• e-l-fBeauty (ELF.US)

  e.l.f. Beauty, Inc., through its subsidiaries, provides cosmetic and skin care products under the e.l.f. and W3LL PEOPLE brand names worldwide. The company offers eye, lip, face, and skin care products, as well as kits and tools. It sells its products through national and international retailers and direct-to-consumer channels, which include e-commerce platforms in the United States; and internationally primarily through distributors. The company was formerly known as J.A. Cosmetics Holdings, Inc. and changed its name to e.l.f. Beauty, Inc. in April 2016. e.l.f. Beauty, Inc. was founded in 2004 and is based in Oakland, California.

• Kao Corporation (KAOOY.US)

  Kao Corporation develops and sells cosmetics, skin and hair care, human health care, fabric and home care, and chemical products. It offers face, body, and oral care products, bath healthcare products, hair care products, hair styling agents and hair coloring agents.

• KOSÉ Corporation (KSRYY.US)

  KOSÉ Corporation manufactures, markets, and sells cosmetics primarily in Asia and the United States. It provides makeup, skin care, as well as toiletries, such as shampoos and conditioners. The company offers its cosmetics under the DECORTÉ, JILLSTUART, SEKKISEI MIYABI, INFINITY, Predia, ADDICTION, Paul Stuart, Awake, tarte, iMPREA, SEKKISEI, ONE BY KOSÉ, LECHÉRI, ESPRIQUE, ASTALUXE, X-Barrier, ACNEO, IC.U, PHIL NATURANT, MAIHADA, Visée, FASIO, ELSIA, SportsBeauty, NAILHOLIC, STEPHEN KNOLL NEW YORK, softymo, Je l’aime, BIOLISS, CLEAR TURN, SUNCUT, KOKUTOUSEI, and GRACE ONE brands.

• LOréal S-A (LRLCY.US)

  L’Oréal S.A. manufactures and sells cosmetic products worldwide. The company operates through four divisions: Consumer Products, L’oréal Luxe, Professional Products, and Active Cosmetics. It offers shampoos, hair care products, shower gels, skin care products, cleansers, hair colors, styling products, deodorants, sun care products, make-up and perfumes.

  The company provides its products under the L’Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup Professional Makeup, Essie, Niely, Dark and Lovely, Lancôme, Yves Saint Laurent Beauté, Giorgio Armani Beauty, Kiehl’s, Urban Decay, Biotherm, Ralph Lauren, IT Cosmetics, L’Oréal Professionnel, Kérastase, Redken, Matrix, Biolage, Pureology, Decléor, Carita, Vichy, La Roche-Posay, SkinCeuticals, and Roger&Gallet brands.

• Natura -and-Co Holding S-A (NTCO.US)

  Natura &Co Holding S.A. develops, produces, distributes, and sells cosmetics, fragrances, and toiletries products. The company offers skin care products for face and body, hair care and treatment products, cosmetics, fragrances, bath, sunscreen, oral hygiene, and baby and child care. It markets its cosmetics under the Natura, Aesop, and The Body Shop brand names.

• Revlon (REV.US)

  Revlon, Inc. develops, manufactures, markets, distributes, and sells beauty and personal care products worldwide.

  The company’s Revlon segment offers color cosmetics and beauty tools under the Revlon brand; and hair color under the Revlon ColorSilk and Revlon Professional brands.
  Its Elizabeth Arden segment markets, distributes and sells skin care products under the Elizabeth Arden Ceramide, Prevage, Eight Hour, SUPERSTART, Visible Difference, and Skin Illuminating brands; and fragrances under the Elizabeth Arden White Tea, Elizabeth Arden Red Door, Elizabeth Arden 5th Avenue, and Elizabeth Arden Green Tea brands.

  The company’s Portfolio segment offers color cosmetics under the Almay and SinfulColors brands; men’s grooming products under the American Crew brand; nail polishes, gel nail color, and nail enhancements under the CND brand; nail care products under the Cutex brand; anti-perspirant deodorants under the Mitchum brand; hair care products under the Creme of Nature; and hair color line under the Llongueras brand.

  Its Fragrances segment develops, markets, and distributes owned and licensed fragrances, as well as distributes prestige fragrance brands owned by third parties. This segment offers its products under the Juicy Couture, John Varvatos, AllSaints, Britney Spears, Elizabeth Taylor, Christina Aguilera, Jennifer Aniston, Mariah Carey, Curve, Giorgio Beverly Hills, Ed Hardy, Charlie, Lucky Brand, ?PS?, Alfred Sung, Halston, Geoffrey Beene, and White Diamonds brands.

  Get more detailed information and learn how to buy Revlon shares

• The Estée Lauder Companies (EL.US)

  The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products. The company offers a range of skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care, oil correctors, facial masks, cleansing devices, and sun care products.

  It also offers makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes, and powders, as well as compacts, brushes, and other makeup tools.

  The company offers its products under Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, Bobbi Brown, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin, Smashbox, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, By Kilian, BECCA, Too Faced, RODIN olio lusso, FLIRT!, Kiton, and Tom Ford brands. It also holds license arrangements for Tommy Hilfiger, Donna Karan New York, DKNY, Michael Kors, Ermenegildo Zegna, Dr. Andrew Weil, TOM FORD BEAUTY, AERIN, and Tory Burch brands.

  Get more detailed information and learn how to buy The Estée Lauder Companies shares

• Ulta Beauty (ULTA.US)

  Ulta Beauty, Inc. operates as a beauty retailer in the United States. The company’s stores offer cosmetics, fragrances, skincare, hair care products, bath and body products, and salon styling tools. It also provides private label products, such as the Ulta Beauty Collection branded cosmetics, skincare, and bath products, as well as Ulta Beauty branded products; and the Ulta Beauty branded gifts.

  Get more detailed information and learn how to buy Ulta Beauty shares

Why invest in makeup stocks?

Cosmetics are, to some extent, considered to be a staple. This means that, like other staples such as food, electricity and water, people will still continue to buy them even when stocks are falling.

This is helped by beauty bloggers and beauty vloggers on Instagram, TikTok and YouTube increasing the popularity of makeup and even influencing consumers to use more expensive brands. Makeup is now considered to be art, and its ability to improve confidence makes it an integral part of a self care routine.

In 2019, the global cosmetics market grew by an estimated 5.25% compared to the previous sales year. Research has discovered that those who use cosmetics aren’t willing to decrease what they spend on beauty products, even with less disposable income on hand.

The cosmetics industry has staying power — makeup has existed for hundreds of years and if recent market trends are anything to judge by, the industry isn’t going anywhere.

Risks of investing in makeup stocks

While makeup is considered a staple, it’s not necessarily an essential item. While these stocks did continue to perform well during the coronavirus pandemic, it may have been helped by a need for self care during such a difficult time.

Makeup isn’t immune to volatility – a shift to online shopping could give smaller independent companies a boost while hindering larger, well known brands. Make sure you look at long term plans for the companies you want to invest in, such as future innovation and product launches.

The bottom line

Makeup stocks can be a way of adding some diversification to your investment portfolio, even if you don’t highlight, contour or blend yourself. Cosmetics companies tend to perform well, and have done even during the coronavirus pandemic, so it’ll be exciting to see what’s next for them.