Sally Beauty gets two upgrades, with one Wall Street firm seeing 50% upside

Sally Beauty kicked off its new marketing campaign with a launch party in New York City. It featured Joey Jay, a drag queen and contestant on the TV show, "RuPaul's Drag Race."
Melissa Repko

Investors should step in and buy the dip in Sally Beauty Holdings to take advantage of an attractive price and improving fundamentals, according to two investment firms.

The stock hit a recent high on May 7 but has since tumbled 23%. Wall Street has been tepid on the company, with the majority of analysts putting hold ratings on the stock.

That underperformance has gone on long enough, according to investment firms Oppenheimer and Cowen. The two upgraded Sally Beauty on Tuesday to outperform, citing the stock's attractive valuation.