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

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Ulta Beauty (ULTA - Free Report) closed at $386.92 in the latest trading session, marking a +1.59% move from the prior day. This change outpaced the S&P 500's 0.24% loss on the day.

Heading into today, shares of the beauty products retailer had gained 2.3% over the past month, outpacing the Retail-Wholesale sector's loss of 5% and the S&P 500's loss of 2.12% in that time.

Wall Street will be looking for positivity from ULTA as it approaches its next earnings report date. In that report, analysts expect ULTA to post earnings of $2.40 per share. This would mark year-over-year growth of 46.34%. Meanwhile, our latest consensus estimate is calling for revenue of $1.86 billion, up 19.61% from the prior-year quarter.

ULTA's full-year Zacks Consensus Estimates are calling for earnings of $15.06 per share and revenue of $8.32 billion. These results would represent year-over-year changes of +223.18% and +35.19%, respectively.

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.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. ULTA is currently a Zacks Rank #1 (Strong Buy).

Investors should also note ULTA's current valuation metrics, including its Forward P/E ratio of 25.29. This valuation marks a premium compared to its industry's average Forward P/E of 12.45.

Meanwhile, ULTA's PEG ratio is currently 1.95. 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 0.97 based on yesterday's closing prices.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% 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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