Oddity Tech Soars 52% in a Month: Is the Stock Still Worth Buying?
Oddity Tech Ltd. ODD shares have rallied 51.9% over the past month, significantly outperforming the Zacks Computer and Technology sector's return of 15.5% and the Zacks Internet - Software industry's growth of 20.5%.The company has also outpaced industry peers, including Paylocity Holding PCTY, Audioeye AEYE and StoneCo STNE. Over the past month, shares of Paylocity Holding and Audioeye have returned 6.6% and 6.1%, respectively, while StoneCo has dropped 1%.ODD's outperformance can be attributed to its standout performance in the first quarter of 2025, driven by solid top and bottom-line growth. Revenues rose 27% year over year to $268 million, exceeding the Zacks Consensus Estimate by 2.86%. Earnings per share came in at 69 cents, representing a 13% increase from the prior year and surpassing expectations by 9.52%. This strong quarterly outperformance highlights the company's solid execution and sustained demand across its digital-first beauty platform.The industry's structural transformation, particularly the shift to online channels, continues to play to Oddity's strengths. As consumer preferences move increasingly toward digital-first experiences, the company is solidifying its leadership as a dominant B2C platform.
ODDITY Tech Ltd. price-consensus-chart | ODDITY Tech Ltd. Quote
Oddity Tech's strong performance continues to be anchored by its growing portfolio of high-performing consumer brands. Both IL Makiage and SpoiledChild delivered double-digit revenue growth in the first quarter, underscoring their central role in the company's momentum. These brands not only fuel current results but also provide a strong foundation for long-term growth and overall performance.IL MAKIAGE remains the company's flagship brand and continues to perform ahead of expectations. Management reiterated confidence in achieving the brand's $1 billion revenue target by 2028. A key driver of this trajectory is IL Makiage Skin, which is anticipated to contribute nearly 40% of the brand's total revenues this year.Meanwhile, SpoiledChild, now in its third year since launch, is quickly establishing itself as a formidable growth engine. The brand is on track to surpass $200 million in revenues in 2025, backed by healthy margins and strong consumer adoption.
Oddity Tech continues to make significant strides in expanding its product portfolio, with its innovation pipeline playing a central role in its growth strategy. Development of Brand 3 is on track for a soft launch in the third quarter of 2025 and a full commercial rollout by year-end. Preparations are also underway for the launch of Brand 4 in 2026, reinforcing the company's commitment to sustained product development. Simultaneously, ODDITY LABS — the company's proprietary molecule discovery platform — remains a key driver of differentiation, strengthening its ability to deliver cutting-edge, science-driven products that resonate with modern consumers.Oddity's international expansion is accelerating, with promising early results in key European markets. The company achieved double-digit growth in France, Italy and Spain, highlighting the success of its global scaling efforts. Management remains optimistic about the international opportunity, noting that while more than 80% of Oddity's revenues currently come from the United States, this opens the door for the company to build scale abroad and unlock new growth engines beyond its home market.
For the second quarter of 2025, Oddity Tech expects total revenues of $235-$239 million, suggesting a 22-24% year-over-year increase. The Zacks Consensus Estimate for revenues is pegged at $237.22 million, indicating 23.06% year-over-year growth.The company expects adjusted earnings per share between 85 cents and 89 cents. The consensus mark for the second-quarter earnings is pegged at 88 cents per share, unchanged over the past 30 days, suggesting a year-over-year rise of 7.32%.For fiscal 2025, Oddity Tech anticipates revenues of $790-$798 million, suggesting 22-23% year-over-year growth. The Zacks Consensus Estimate for revenues is pegged at $796.37 million, indicating year-over-year growth of 23.08%.Adjusted earnings per share are expected to be $1.99-$2.04 per share. The consensus mark for earnings is pegged at $2.02 per share, up 3.1% in the past 30 days, suggesting a year-over-year rise of 3.06%.Oddity Tech's earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 32.80%.
Oddity Tech presents a compelling investment opportunity, backed by strong revenue and earnings growth, highlighting a clear path to sustained profitability. Its double-digit growth in key markets, robust innovation pipeline and accelerating global expansion, combined with strong brand momentum, position Oddity Tech as a long-term value creator in the beauty and wellness space.Considering all these factors, it is prudent to buy this Zacks Rank #1 (Strong Buy) stock right now. You can see the complete list of today's Zacks #1 Rank stocks here.
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