Back to top

Image: Bigstock

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

Read MoreHide Full Article

Ulta Beauty (ULTA - Free Report) closed the latest trading day at $376.22, indicating a -0.95% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.33%. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq decreased by 0.56%.

Coming into today, shares of the beauty products retailer had gained 0.19% in the past month. In that same time, the Retail-Wholesale sector lost 0.22%, while the S&P 500 gained 1.83%.

Analysts and investors alike will be keeping a close eye on the performance of Ulta Beauty in its upcoming earnings disclosure. In that report, analysts expect Ulta Beauty to post earnings of $4.45 per share. This would mark a year-over-year decline of 12.23%. Alongside, our most recent consensus estimate is anticipating revenue of $2.49 billion, indicating a 0.04% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $23.07 per share and revenue of $11.19 billion, which would represent changes of -11.37% and -0.17%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Ulta Beauty. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.62% decrease. At present, Ulta Beauty boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Ulta Beauty is presently being traded at a Forward P/E ratio of 16.47. This indicates a premium in contrast to its industry's Forward P/E of 12.15.

It's also important to note that ULTA currently trades at a PEG ratio of 2.18. 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 industry had an average PEG ratio of 2.18 as trading concluded yesterday.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Ulta Beauty Inc. (ULTA) - free report >>

Published in