Coty: Deep Value With Significant Risk

May 12, 2021 9:28 AM ETCoty Inc. (COTY) StockCOTY8 Comments

Summary

  • Coty appears materially undervalued even under conservative assumptions.
  • The global beauty manufacturer has failed to execute over the past few years and was especially hard hit by the pandemic.
  • Strong momentum in China, E-Commerce, and CoverGirl point towards a new leaf being turned.
Professional make-up artist flat lay on beige background for fashion woman.
Photo by Amax Photo/iStock via Getty Images

With market valuations at historical highs, investors would be wise to consider investing in value stocks. I anticipate that there will be a large migration of capital towards value stocks, as investors try to protect against downside from multiple contraction. Beyond your traditional value

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I previously worked in the financial sector across multiple industries, including consumer, renewable energy, technology, healthcare, and industrials. I am a traditional "buy-and-hold" investor that prefers smaller cap, value stocks based on the academic research supporting long-term returns.

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