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Upon a cursory look, shares of beauty care specialist Coty (COTY) might appear due for a healthy corrective action. Since the start of this year, COTY stock soared nearly 43%. For context, the benchmark S&P 500 index – while arguably beating expectations – returned just over 16%. Priced at a premium to earnings, now might seem like an ideal time to take some profits off the table.
Nevertheless, it’s quite possible for the rally in COTY stock to continue moving forward. For one thing, options traders appear enthused about the upside prospect. On a fundamental note, COVID-19 fears have all but disappeared. It’s just rare to see folks wearing protective covering these days, even with the SARS-CoV-2 virus mutating.
