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Top Stock Picks for Week of July 25, 2022

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Ulta Beauty Inc (ULTA - Free Report) , previously known as Ulta Salon, Cosmetics & Fragrance, Inc., is a leading beauty retailer in the United States. Shares of Ulta Beauty have outpaced the industry in the past three months. The company has been benefiting from its omnichannel strength. Also, the skincare category has been gaining from consumers’ rising interest in self-care. These upsides aided first-quarter fiscal 2022 results, wherein the top and bottom lines grew year over year and beat the Zacks Consensus Estimate. Results were backed by the strong execution of the company’s strategies and solid guest demand, with the latter gaining from the company’s exciting brand launches. Also, increased in-person activities and travel have been leading to the revival of the beauty category demand. All major categories delivered double-digit comp sales growth. Encouragingly, management raised its fiscal 2022 view. While the overall earnings estimate revisions have made Ulta a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors.

Franklin Covey Co. (FC - Free Report) is an international learning and performance solutions company dedicated to increasing the effectiveness of individuals and organizations. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. FC is quite a good fit in this regard, gaining by double digits over this period. At this writing, the stock carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- a key factor that impact a stock's near-term price movements. The Zacks Consensus Estimate for FC’s fiscal 2022 earnings has been revised upward. Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.


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