Ulta Beauty (ULTA) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Ulta Beauty (ULTA) closed at $523.59, marking a +1.87% move from the previous day. This change outpaced the S&P 500's 1.05% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 9.7%.
Prior to today's trading, shares of the beauty products retailer had gained 8.98% over the past month. This has lagged the Retail-Wholesale sector's gain of 11.69% and outpaced the S&P 500's gain of 6.27% in that time.
Ulta Beauty will be looking to display strength as it nears its next earnings release. On that day, Ulta Beauty is projected to report earnings of $4.21 per share, which would represent a year-over-year decline of 22.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3 billion, up 9.95% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Ulta Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Ulta Beauty currently has a Zacks Rank of #2 (Buy).
Investors should also note Ulta Beauty's current valuation metrics, including its Forward P/E ratio of 22.47. This represents a premium compared to its industry's average Forward P/E of 15.76.
Meanwhile, ULTA's PEG ratio is currently 1.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Miscellaneous industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
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