MAV Beauty Brands (TSX:MAV) stock was down 1.25% in mid-afternoon trading on July 3. The company launched its initial public offering in July 2018. A year later the stock has lost more than half of its initial value.
This has occurred over the same stretch of time that has seen Ulta Beauty, a U.S.-based cosmetics giant, soar to all-time highs.
MAV Beauty Brands is a minnow compared to Ulta, but that does not mean its selloff has been completely warranted. The global beauty and personal care products market size is expected to reach over $700 billion by 2025, according to a report from Research and Markets. This represents a CAGR of 5.9% from 2018 to 2025.
The stock enjoyed a slight bump after the release of its first quarter 2019 results. In the first quarter revenue rose 51% year-over-year to $24.1 million and adjusted EBITDA increased 27% to $6.2 million. The company aims to position itself for an international push that it hopes will fuel growth into the next decade.
Shares of MAV Beauty are now trading at the low end of their 52-week range. The company has made steady improvements and looks poised to benefit from its global strategy. Investors on the hunt for a bargain with long-term growth potential should seriously consider this stock for their portfolios today.
The stock had an RSI of 28 at the time of this writing. This puts MAV Beauty Brands in technically oversold territory.
