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Ulta Beauty (ULTA) Outpaces Stock Market Gains: What You Should Know

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Ulta Beauty (ULTA - Free Report) closed at $342.28 in the latest trading session, marking a +0.88% move from the prior day. This change outpaced the S&P 500's 0.12% gain on the day.

Prior to today's trading, shares of the beauty products retailer had gained 2% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.33% and lagged the S&P 500's gain of 3% in that time.

ULTA will be looking to display strength as it nears its next earnings release, which is expected to be August 25, 2021. In that report, analysts expect ULTA to post earnings of $2.19 per share. This would mark year-over-year growth of 200%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.71 billion, up 39.57% from the year-ago period.

ULTA's full-year Zacks Consensus Estimates are calling for earnings of $12.17 per share and revenue of $7.83 billion. These results would represent year-over-year changes of +161.16% and +27.3%, respectively.

Investors might also notice recent changes to analyst estimates for ULTA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ULTA currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that ULTA has a Forward P/E ratio of 27.89 right now. This represents a premium compared to its industry's average Forward P/E of 15.7.

Investors should also note that ULTA has a PEG ratio of 1.69 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Miscellaneous was holding an average PEG ratio of 1.42 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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