Bill Miller Boosts Avon, Coty Stocks

Shares of Avon Products, Inc. AVP jumped more than 20 percent Thursday after legendary fund manager Bill Miller of Miller Value Partners told CNBC the stock could be a "10 bagger in the next three to five years."

'First Time In Years'

Avon Products, a direct selling company within the beauty, household and personal care space, has seen its stock fall to around a 70-year low just below $2 per share, Miller said during an interview on CNBC's "Squawk on the Street." The company now boasts a new management team "all up and down" that has a coherent strategy for the "first time in years, if not decades."

Miller said Avon is backed by hundreds of millions of dollars in free cash flow and offers investors exposure to emerging markets after the company divested its U.S. business in late 2015. This makes Avon one of the more unique stocks the investor bought recently. Even if shares do rise in value ten-fold over the coming years, it will still be notably below its all-time highs in the mid $40s in 2004.

Miller Also Likes Coty

Miller also said he personally -- not his Miller Value Partners fund -- bought shares in Coty Inc COTY, a rival beauty company to Avon. Similar to Avon, shares of Coty have seen heavy losses over the years but Miller thinks the "most of the damage has been done."

Major private equity group JAB Holdings is Coty's biggest investor and was buying "every share that was available in blocks" near the $8.50 per share level, which is still above the $7.70 level shares were seen trading at Thursday. Coty shares rose more than 5 percent following Miller's comments.

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