Online Cosmetics Retailer Oddity Draws in Big Money

ODD is an online cosmetics retailer offering its more than 60 million users an AI platform to shop and buy customized cosmetics. The company uses an algorithm to help match users to ideal products. It’s emerged as a leader using its online-only strategy and its Il Makiage and Spoiled Child brands are gaining in popularity.

On the earnings front, ODD’s first-quarter fiscal 2025 report showed a 27% revenue increase, to $268 million. Adjusted EBITDA margin was almost at 20%, reflecting a reading of $52 million. The company’s lack of debt and cash position of $257 million position it well for the future, as does its guidance. For the full year, ODD raised its gross margin outlook to 71%, adjusted EBITDA to an upward end of $161 million, and adjusted per-share earnings outlook to a high of $2.04.

It’s no wonder ODD shares are up 83% this year – and they could rise more. MoneyFlows data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying Oddity

Institutional volumes reveal plenty. In the last year, ODD has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in ODD shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of staples names are under accumulation right now. But there’s a powerful fundamental story happening with Oddity.

Oddity Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, ODD has had strong sales and earnings growth:

• 3-year sales growth rate (+43.3%)
• 3-year EPS growth rate (+98.6%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +18.8%.

Now it makes sense why the stock has been powering to new heights. ODD has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Oddity has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Outlier 20 report multiple times. The blue bars below show when ODD was a top pick…supported by Big Money inflows:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Oddity Price Prediction

The ODD rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in ODD at the time of publication.

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