Cosmetics companies’ stocks have been looking stunning the past couple of years, but investors should be wary of beauty turning ugly.
The recent share-price performance for some of the world’s largest cosmetics and skin-care product makers needs no varnish. Estée Lauder’s stock has doubled since the beginning of 2017, while shares in Japan’s Shiseido and Kose have almost tripled. Even the so-called FANG stocks need a bit of makeup by comparison—they are up 124% over the same period.
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