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Ulta Beauty (ULTA) Stock Drops Despite Market Gains: Important Facts to Note

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Ulta Beauty (ULTA - Free Report) ended the recent trading session at $507.35, demonstrating a -1.68% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.02%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.07%.

The beauty products retailer's stock has dropped by 4.11% in the past month, falling short of the Retail-Wholesale sector's loss of 3.11% and the S&P 500's gain of 5.12%.

The investment community will be paying close attention to the earnings performance of Ulta Beauty in its upcoming release. The company is slated to reveal its earnings on June 2, 2026. In that report, analysts expect Ulta Beauty to post earnings of $6.87 per share. This would mark year-over-year growth of 2.54%. Our most recent consensus estimate is calling for quarterly revenue of $3.08 billion, up 8.16% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $28.47 per share and a revenue of $13.22 billion, representing changes of +11.04% and +6.65%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Ulta Beauty. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. At present, Ulta Beauty boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Ulta Beauty is currently being traded at a Forward P/E ratio of 18.13. This expresses a premium compared to the average Forward P/E of 14.53 of its industry.

Meanwhile, ULTA's PEG ratio is currently 1.79. 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 was holding an average PEG ratio of 1.76 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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