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Ulta Beauty (ULTA) Exceeds Market Returns: Some Facts to Consider

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Ulta Beauty (ULTA - Free Report) ended the recent trading session at $529.50, demonstrating a +1.79% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.52%. At the same time, the Dow added 1.89%, and the tech-heavy Nasdaq gained 1.88%.

The beauty products retailer's shares have seen an increase of 1.29% over the last month, surpassing the Retail-Wholesale sector's gain of 0.73% and the S&P 500's gain of 1.1%.

Market participants will be closely following the financial results of Ulta Beauty in its upcoming release. The company plans to announce its earnings on August 28, 2025. The company's earnings per share (EPS) are projected to be $4.97, reflecting a 6.23% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.64 billion, reflecting a 3.49% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $23.55 per share and revenue of $11.66 billion, which would represent changes of -7.06% and +3.21%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ulta Beauty. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.56% increase. As of now, Ulta Beauty holds a Zacks Rank of #3 (Hold).

With respect to valuation, Ulta Beauty is currently being traded at a Forward P/E ratio of 22.09. This indicates a premium in contrast to its industry's Forward P/E of 15.54.

Meanwhile, ULTA's PEG ratio is currently 3.13. 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. As the market closed yesterday, the Retail - Miscellaneous industry was having an average PEG ratio of 3.13.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 88, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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