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Ulta Beauty (ULTA) Dips More Than Broader Markets: What You Should Know

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Ulta Beauty (ULTA - Free Report) closed at $333.97 in the latest trading session, marking a -1.05% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day.

Coming into today, shares of the beauty products retailer had lost 1.82% in the past month. In that same time, the Retail-Wholesale sector lost 2.34%, while the S&P 500 gained 2.91%.

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 $2.22 per share. This would mark year-over-year growth of 204.11%. Our most recent consensus estimate is calling for quarterly revenue of $1.73 billion, up 40.79% from the year-ago period.

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. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. ULTA is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that ULTA has a Forward P/E ratio of 27.73 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.97.

Also, we should mention that ULTA has a PEG ratio of 1.68. 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. ULTA's industry had an average PEG ratio of 1.45 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.

To follow ULTA in the coming trading sessions, be sure to utilize Zacks.com.


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