Tech stocks have struggled the past year as interest rate hikes and recession fears hit the market hard. But one rarely-talked-about industry has held up quite well: makeup and cosmetics.
Ulta Beauty Inc ULTA, one of the leading storefronts for different makeup brands, hit a new all-time-high Wednesday, surpassing $544 a share. The stock is now up more than 20% in the past year, crushing big tech names and the overall market.
Why Is Ulta So Strong? Ulta is a mainstay for makeup and skincare shoppers, offering a strong variety of products at different price points. Additionally, Ulta has a deal with Target Corp TGT, one of the largest chains in America, to sell products.
Skincare and makeup tutorials are extremely popular on social media apps such as YouTube and TikTok, so more women are likely to shop for more products.
And, it’s not just women that are shopping at Ulta. According to Grand View Research, the market opportunity for men’s skincare products is supposed to grow at a rate of more than 6% a year.
Here’s How The Returns Break Down:
From April 2022 to current:
Apple Inc APPL stock is almost exactly flat throughout the past year, up $.07 from $167.23 to $167.30 according to Google Finance.
Tesla Inc TSLA stock is down more than 40%, from $325.73 to $167.62.
Microsoft Corp MSFT stock is up slightly, from $286.36 to $287.14 a share.
Meanwhile… Ulta’s stock is up more than 25% from $431.38 to $544.48 a share.