As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at personal care stocks, starting with USANA (NYSE: USNA).

While personal care products products may seem more discretionary than food, consumers tend to maintain or even boost their spending on the category during tough times. This phenomenon is known as "the lipstick effect" by economists, which states that consumers still want some semblance of affordable luxuries like beauty and wellness when the economy is sputtering. Consumer tastes are constantly changing, and personal care companies are currently responding to the public’s increased desire for ethically produced goods by featuring natural ingredients in their products.

The 12 personal care stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 4.5% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.3% since the latest earnings results.

Best Q2: USANA (NYSE: USNA)

Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE: USNA) manufactures and sells nutritional, personal care, and skincare products.

USANA reported revenues of $235.8 million, up 10.8% year on year. This print exceeded analysts’ expectations by 4.7%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA and EPS estimates.

USANA pulled off the fastest revenue growth and highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 34.8% since reporting and currently trades at $20.55.

Is now the time to buy USANA? Access our full analysis of the earnings results here, it’s free for active Edge members.

BeautyHealth (NASDAQ: SKIN)

Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ: SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin.

BeautyHealth reported revenues of $78.19 million, down 13.7% year on year, outperforming analysts’ expectations by 4.6%. The business had a very strong quarter with a beat of analysts’ EPS and EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.8% since reporting. It currently trades at $1.41.

Is now the time to buy BeautyHealth? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: Edgewell Personal Care (NYSE: EPC)

Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE: EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.

Edgewell Personal Care reported revenues of $627.2 million, down 3.2% year on year, falling short of analysts’ expectations by 4.2%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and organic revenue estimates.

Edgewell Personal Care delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 20% since the results and currently trades at $20.

Read our full analysis of Edgewell Personal Care’s results here.

Nature's Sunshine (NASDAQ: NATR)

Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.

Nature's Sunshine reported revenues of $114.8 million, up 3.8% year on year. This number surpassed analysts’ expectations by 2.2%. It was a very strong quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 2.9% since reporting and currently trades at $14.30.

Read our full, actionable report on Nature's Sunshine here, it’s free for active Edge members.

Coty (NYSE: COTY)

With a portfolio boasting many household brands, Coty (NYSE: COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.

Coty reported revenues of $1.25 billion, down 8.1% year on year. This result topped analysts’ expectations by 3.9%. However, it was a softer quarter as it produced a significant miss of analysts’ EBITDA and EPS estimates.

The stock is down 14.2% since reporting and currently trades at $4.14.

Read our full, actionable report on Coty here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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