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Ulta Beauty (ULTA) Outperforms Broader Market: What You Need to Know

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In the latest market close, Ulta Beauty (ULTA - Free Report) reached $401.59, with a +1.24% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq decreased by 0.03%.

The beauty products retailer's stock has dropped by 11.44% in the past month, falling short of the Retail-Wholesale sector's gain of 1.26% and the S&P 500's gain of 0.17%.

Investors will be eagerly watching for the performance of Ulta Beauty in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 30, 2024. On that day, Ulta Beauty is projected to report earnings of $6.25 per share, which would represent a year-over-year decline of 9.16%. Meanwhile, our latest consensus estimate is calling for revenue of $2.73 billion, up 3.54% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $26.48 per share and a revenue of $11.73 billion, indicating changes of +1.73% and +4.62%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Ulta Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. Currently, Ulta Beauty is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Ulta Beauty is currently exchanging hands at a Forward P/E ratio of 14.98. This expresses a premium compared to the average Forward P/E of 13.09 of its industry.

Also, we should mention that ULTA has a PEG ratio of 1.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Miscellaneous industry had an average PEG ratio of 1.63 as trading concluded yesterday.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 42% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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