In a shocking discovery, independent U.S. laboratory Valisure found high levels of benzene in some acne treatments from brands like Estee Lauder’s (EL) Clinique, Target’s (TGT) Up & Up, Walgreen’s (WBA) acne soap bar and Walmart’s (WMT) Equate Beauty acne cream.
According to a Reuters report, Valisure has also petitioned the U.S. Food and Drug Administration (FDA) to recall the products, conduct an investigation, and update industry guidance. Valisure added that benzene could be at “unacceptably high levels” in both prescription and over-the-counter benzoyl peroxide products for treatment of acne. Benzene is a carcinogen, and such high levels could be harmful to users.
In an earlier incident, benzene was found in other consumer products, including sunscreens, hand sanitizers, and dry shampoo, leading to product recalls by companies like P&G (PG) and Johnson & Johnson (JNJ).
However, in this case, Valisure noted that the benzene in acne treatment differed significantly from previous cases, as the benzene originated from benzoyl peroxide itself, not contaminated ingredients. The lab’s tests showed that some products contained more than 800 times the FDA concentration limit for benzene.
What Companies Are in XRT?
For investors interested in getting exposure to the retail sector, the SPDR S&P Retail ETF (XRT) is a good option. The XRT ETF has holdings in some major retailers, including Abercrombie & Fitch (ANF), Nordstrom (JWN), and Revolve Group (RVLV).
Over the past year, the XRT has gained by more than 18%. Overall, analysts are cautiously optimistic about XRT with a Moderate Buy consensus rating based on 42 Buys, 32 Holds, and four Sells. The average XRT price target of $78.20 implies an upside potential of 2.8% at current levels.
