ODDITY Rises 6.7% in 3 Months: How Should You Play the Stock?

Core Insights - ODDITY has experienced a 6.7% increase in shares over the past three months, which is lower than the Zacks Internet-Software industry's 8.5% and the Zacks Computer and Technology sector's 8.4% returns [1] - The company is expanding its business through a strong direct-to-consumer model and personalized products, with brands like IL MAKIAGE and SpoiledChild showing strong double-digit growth [1] Group 1: Business Model and Growth - ODDITY has invested significantly in artificial intelligence, data science, machine learning, and computer vision, enhancing consumer engagement through online advertising [2] - The direct-to-consumer model allows ODDITY to gather direct data insights that are not available through traditional offline channels [2] - ODDITY's reliance on consumer data enables personalized product recommendations, positioning the company as a disruptor in the cosmetics industry [4] Group 2: Market Context - The cosmetics industry is traditionally slow-moving and primarily offline, with major players like Estée Lauder, Ulta Beauty, and Coty relying on physical retail outlets [3] - ODDITY is leveraging its consumer insights to expand sales in the U.S. market, achieving $414.1 million in U.S. sales in 2023, a 71.7$508.7 million in 2023, up 56.7% from $324.5 million in 2022, with expectations for 2024 revenues in the range of$642-$644 million [8] - The Zacks Consensus Estimate for 2024 revenues is$643 million, indicating a year-over-year growth of 26.4% [8] Group 4: Future Plans - ODDITY plans to launch two new brands, including a telehealth platform, to further capitalize on the $600 billion global online cosmetics market [7]