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Ulta Beauty Inc. (ULTA) Hit a 52 Week High, Can the Run Continue?
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A strong stock as of late has been Ulta Beauty (ULTA - Free Report) . Shares have been marching higher, with the stock up 3% over the past month. The stock hit a new 52-week high of $538.59 in the previous session. Ulta has gained 22% since the start of the year compared to the 8.5% move for the Zacks Retail-Wholesale sector and the 11.2% return for the Zacks Retail - Miscellaneous industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 28, 2025, Ulta reported EPS of $5.78 versus consensus estimate of $5.03.
For the current fiscal year, Ulta is expected to post earnings of $23.63 per share on $11.68 in revenues. This represents a -6.75% change in EPS on a 3.37% change in revenues. For the next fiscal year, the company is expected to earn $25.84 per share on $12.22 in revenues. This represents a year-over-year change of 9.34% and 4.68%, respectively.
Valuation Metrics
Ulta may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ulta has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.3X. On a trailing cash flow basis, the stock currently trades at 16.8X versus its peer group's average of 7.1X. Additionally, the stock has a PEG ratio of 3.19. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Ulta currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ulta passes the test. Thus, it seems as though Ulta shares could have a bit more room to run in the near term.
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Ulta Beauty Inc. (ULTA) Hit a 52 Week High, Can the Run Continue?
A strong stock as of late has been Ulta Beauty (ULTA - Free Report) . Shares have been marching higher, with the stock up 3% over the past month. The stock hit a new 52-week high of $538.59 in the previous session. Ulta has gained 22% since the start of the year compared to the 8.5% move for the Zacks Retail-Wholesale sector and the 11.2% return for the Zacks Retail - Miscellaneous industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 28, 2025, Ulta reported EPS of $5.78 versus consensus estimate of $5.03.
For the current fiscal year, Ulta is expected to post earnings of $23.63 per share on $11.68 in revenues. This represents a -6.75% change in EPS on a 3.37% change in revenues. For the next fiscal year, the company is expected to earn $25.84 per share on $12.22 in revenues. This represents a year-over-year change of 9.34% and 4.68%, respectively.
Valuation Metrics
Ulta may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ulta has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.3X. On a trailing cash flow basis, the stock currently trades at 16.8X versus its peer group's average of 7.1X. Additionally, the stock has a PEG ratio of 3.19. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Ulta currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ulta passes the test. Thus, it seems as though Ulta shares could have a bit more room to run in the near term.