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Top Beauty Stocks To Watch As AI, Biotech, And Social Commerce Reshape The Industry

Written By

Dan Buckley

Written By

Dan Buckley

Dan Buckley is an US-based trader, consultant, and part-time writer with a background in macroeconomics and mathematical finance. His expert insights for DayTrading.com have been featured in multiple respected media outlets, including Yahoo Finance, AOL and GOBankingRates. As a writer, his goal is to explain trading and finance concepts in levels of detail that could appeal to a range of audiences, from novice traders to those with more experienced backgrounds.

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Updated

Jul 25, 2025

The beauty and cosmetics industry is undergoing a major transformation. We’re now seeing more AI‑driven personalization, while biotech ingredients are transforming and improving formulation and the overall efficacy of beauty and skincare products.

Notable examples include hyperspectral shade-matching, lab-grown actives, and ingredient optimization for sustainability and consumer appeal.

Interestingly, social commerce and digital-first retail (e.g., via TikTok virality, AR try-ons, and shoppable livestreams) are democratizing brand discovery.

It’s also turbocharging sales funnels because you can now reach massive audiences without necessarily needing a massive marketing budget.

And the clean and regenerative beauty wave (focused on transparency, microplastic bans, biotech sourcing, and ethical formulations) is meeting consumer demand for sustainability and wellness.

3 Beauty & Cosmetic Stocks To Watch

• L’Oreal (EPA: OR) – L’Oreal is the world’s largest beauty company and excels in beauty-tech innovation, such as AI-powered diagnostics, biotech-derived actives, and AR try-ons. It leverages its vast brand portfolio, from mass-market to luxury, to ride both personalization and premiumization trends. Also available as an ADR (OTCMKTS: LRLCY).
• Estée Lauder (NYSE: EL) – EL owns prestige brands like La Mer, MAC, and Tom Ford. Its “Beauty Reimagined” strategy is improving its digital footprint and e‑commerce reach, and is solidifying its position in high-margin skincare and luxury makeup categories.
• Ulta Beauty (NASDAQ: ULTA) – Ulta is the leading US beauty retailer. Ulta blends in‑store and digital experiences seamlessly, and benefits from a massive loyalty program and social commerce momentum. Its strong omni-channel growth at a compelling valuation is where it stands out.

The information provided in this article is for informational purposes only and does not constitute financial advice, investment recommendations, or an offer to buy or sell any securities. Always conduct your own research before making any investment decisions.