Give Your Portfolio a Facelift: “National Healthy Skin Month” Stock Plays
By the time you finish reading this article, you will be an additional 5 to 30 minutes older, depending on your reading level and inability to pay attention. Additionally, if this article incites any kind of emotion from you, it’s likely you’ll have gained another wrinkle. Don’t laugh. It’s cheaper than Botox. And while we hate to make you raise an eyebrow, it’s National Healthy Skin Month. Join us as we highlight some tips to “show that glow”. If you’re more of the careless kind, follow along for some skin-related stock plays, so you can afford that facelift.
Bronz-ER
Who doesn’t like a nice bronze body? People who would like to minimize wrinkles and avoid skin cancer, that’s who. While we think it’s good to get out for your daily dose of Vitamin D wrapped in sunshine, protecting your skin from harmful UV rays is a must. We agree a tan looks good, but we suggest being fake about it. Please don’t overdo it, Jersey.
The CDC recommends using sunscreen with an SPF of 15 or higher to protect from both UVA and UVB rays. So, get to slathering because leather is only intended for jackets and boots. Edgewell Personal Care, Co. (EPC) is a grooming and personal care products company whose portfolio includes Schick, Wilkinson Sword, Edge, Playtex, Carefree, and Hawaiian Tropic. Last quarter, Edgewell topped out on its 3Q numbers, however it is still down ~6%, YTD. Q4 2023 financials will be released on November 9th, before market open.
Not Putting Any Wrinkles In Our Time
Warning, here’s another eyebrow raiser – Today is National Retinol Day. Fitting, right? We did that on purpose. In life, routines are important to improve habits and behaviors, skincare included. That means washing your face daily, wearing minimal healthy make up, and applying specific skin treatments. We always say, it’s better to have an excessive amount of wrinkle and anti-aging creams to “go long” on investing in the potential discovery, of “the fountain of youth”.
As it relates to skincare and beauty products, it’s fitting to mention Estee Lauder Corporation, Inc. (EL) who has appeared, in recent Street headlines. Last week, the cosmetic conglomerate reported disappointing Q1 2024 results. The announcement included a 10% decline in net sales for the quarter and cited continued weak demand in China, which resulted in slashed annual targets, despite an earnings beat. Over the past 5 days, the stock is down ~12% which is just “a drop in the serum bottle” compared to its negative ~56% YTD return.
Eat Your Glow Out
Unfortunately, once again, a healthy diet is supposedly good for you. However, when it comes to your skin, this diet isn’t all flavorless news. Foods that are high in healthy fat can also be nutritious for your skin. So, while a donut won’t count, salmon, guacamole, and nuts are some tasty options. If those choices aren’t enticing, antioxidant rich, dark chocolate, is also recommended. However, if you’re still working through your kids Halloween candy instead, then at least add vitamin supplements D,C,E and K to your daily intake, you savage.
Hong-Kong based, Natural Health Trends Corp, Inc. (NHTC) is a global direct-selling and e-commerce company focusing on health, wellness, and personal care products that include skincare supplements and other dietary supplements. Last week, the company reported its 3Q 2023 financial results which included improved cash flows from operations of $1.4M and orders that have remained flat, despite hesitant Chinese consumer behaviors and strong dollar headwinds. The microcap company is up, ~63% YTD.
If You Haven’t Booked Your Spa Day…
Sometimes you can look at people and tell how hard of a life they’ve lived. Case in point, Ozzy Osbourne. While this next skincare tip isn’t about illicit drug use (also not healthy for you), it is about managing your stress levels. Destressing can help keep your skin radiant and looking fresh. However, we understand stress happens and can be unavoidable. That is why spas exist. Now you have a health-related excuse to go book that facial/massage combo, this weekend.
In addition to spa treatments, dermatologic treatments and procedures such as micro-needling or laser resurfacing, can provide benefits to maintaining healthy skin. Cutera, Inc. (CUTR) is a medical device company focused on advanced aesthetic and medical laser systems as well as other energy-based technologies. Cutera’s products are used by dermatologists, plastic surgeons, and medical spa practitioners offering a wide range of non-invasive and minimally invasive treatments, for various cosmetic and medical applications. Two months ago the company increased its product portfolio with the addition of the Secret DUO, an innovative skin resurfacing and revitalization platform that utilizes dual, non-ablative, fractional technologies. The company will announce Q3 results on Wednesday, after the close. The microcap is down ~92% YTD.
No matter what habits you employ this month to enhance your healthy radiance, don’t forget to firm up your portfolio and inject it with some fresh ideas. A good skincare routine is not cheap. However, so long as you’re not entirely aboard life’s Crazy Train, it can save you in the long run, from looking like Ozzy.
