We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ulta Beauty (ULTA) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Ulta Beauty (ULTA - Free Report) closed the most recent trading day at $378.07, moving +1.33% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.24%. Meanwhile, the Dow gained 2.51%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Heading into today, shares of the beauty products retailer had gained 6.12% over the past month, outpacing the Retail-Wholesale sector's loss of 2.71% and the S&P 500's loss of 2.58% in that time.
Investors will be hoping for strength from Ulta Beauty as it approaches its next earnings release, which is expected to be March 10, 2022. The company is expected to report EPS of $4.50, up 31.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.7 billion, up 22.87% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Ulta Beauty. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. Ulta Beauty is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Ulta Beauty is currently trading at a Forward P/E ratio of 20.75. This represents a premium compared to its industry's average Forward P/E of 10.96.
Meanwhile, ULTA's PEG ratio is currently 1.6. 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 was holding an average PEG ratio of 0.67 at yesterday's closing price.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 28% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ulta Beauty (ULTA) Gains But Lags Market: What You Should Know
Ulta Beauty (ULTA - Free Report) closed the most recent trading day at $378.07, moving +1.33% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.24%. Meanwhile, the Dow gained 2.51%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Heading into today, shares of the beauty products retailer had gained 6.12% over the past month, outpacing the Retail-Wholesale sector's loss of 2.71% and the S&P 500's loss of 2.58% in that time.
Investors will be hoping for strength from Ulta Beauty as it approaches its next earnings release, which is expected to be March 10, 2022. The company is expected to report EPS of $4.50, up 31.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.7 billion, up 22.87% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Ulta Beauty. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. Ulta Beauty is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Ulta Beauty is currently trading at a Forward P/E ratio of 20.75. This represents a premium compared to its industry's average Forward P/E of 10.96.
Meanwhile, ULTA's PEG ratio is currently 1.6. 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 was holding an average PEG ratio of 0.67 at yesterday's closing price.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 28% 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.