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

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Ulta Beauty (ULTA - Free Report) closed at $340.32 in the latest trading session, marking a -0.39% move from the prior day. This change lagged the S&P 500's 0.2% gain on the day.

Coming into today, shares of the beauty products retailer had gained 0.14% in the past month. In that same time, the Retail-Wholesale sector gained 0.42%, while the S&P 500 gained 3.28%.

Wall Street will be looking for positivity from ULTA as it approaches its next earnings report date. This is expected to be August 25, 2021. On that day, ULTA is projected to report earnings of $2.23 per share, which would represent year-over-year growth of 205.48%. Meanwhile, our latest consensus estimate is calling for revenue of $1.73 billion, up 40.79% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.17 per share and revenue of $7.84 billion, which would represent changes of +161.16% and +27.38%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for ULTA. Recent revisions tend to reflect the latest near-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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. ULTA is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note ULTA's current valuation metrics, including its Forward P/E ratio of 28.07. For comparison, its industry has an average Forward P/E of 16.03, which means ULTA is trading at a premium to the group.

Meanwhile, ULTA's PEG ratio is currently 1.7. 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. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% 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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