3 Consumer Defensive Stocks Under $10 Wall Street Predicts Will Rally 30% or More

Concerns over record-high inflation, supply chain bottlenecks, growing geopolitical tensions, and the Fed’s impending interest rate hikes continue to negatively impact investor sentiment. But while surging inflation has impacted the…

financials of numerous companies, consumer staples companies are well-positioned to pass on higher prices to customers and remain profitable due to the near-inelastic demand for their products.

Furthermore, according to recent reports from Bank of America, the total spending on credit and debit cards increased 12.3% year-over-year from early February, and 90% of consumers are expected to spend more on groceries, household, and personal items in the coming months.

Given this backdrop, Wall Street analysts expect fundamentally sound consumer defensive stocks Coty Inc. (COTY – Get Rating), Hims & Hers Health, Inc. (HIMS – Get Rating), and AppHarvest, Inc. (APPH – Get Rating), which are currently trading at less than $10, to deliver solid upside in the coming months.

Coty Inc. (COTY – Get Rating)

New York City-based COTY and its subsidiaries manufacture, market, distribute, and sell beauty products worldwide. The company offers prestige fragrances, skincare, and color cosmetics products through renowned retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under reputed brands that include Alexander McQueen, Burberry, Calvin Klein, Gucci, and others.

Last month, COTY announced that Sally Hansen had launched  an advanced virtual try-on tool, the first to market Perfect Corp.’s AgileHand Technology application, which allows consumers to easily experience hundreds of Sally Hansen nail color options in an expanded reality environment. Perfect Corp. is a well-known beauty and fashion tech solutions provider.

COTY’s net revenue increased 11.5% year-over-year to $1.58 billion in the second quarter, ended Dec. 31, 2021. Its non-GAAP operating income grew 16.4% from its year-ago value to $236.30 million, while its non-GAAP net income improved 44.4% year-over-year to $147.7 million over the period. The company non-GAAP EPS amounted to $0.17.

Analysts expect COTY’s revenue to increase 12.4% year-over-year to $1.16 billion in the third quarter, ended March 31, 2022.

The $13.75, 12-month median price target indicates an 87.1% potential upside. The price targets range from a low of $11.00 to a high of $20.00. The stock closed the last trading session at $7.35.

Hims & Hers Health, Inc. (HIMS – Get Rating)

HIMS functions as a multi-specialty telehealth platform connecting consumers to licensed healthcare professionals. The San Francisco-based concern also offers a wide range of health and wellness products and services available for purchase directly by customers or through its website or mobile application.

This month, HIMS announced a partnership with Goodpath, the integrative digital clinic. Under the partnership, HIMS will eventually have access to even more high educational content and programming examined by medical advisors to help members that need additional support for sleep, musculoskeletal (MSK) issues, back pain, and gastroesophageal reflux disease (GERD). The content will be accessible on the recently launched Hims & Hers mobile app.

Last month, HIMS announced a partnership with GNC Holdings, LLC (GNC), a health and wellness brand, to offer consumers health and wellness solutions at selected GNC stores nationwide and online on their website…

 

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