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Ulta Beauty (ULTA) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest close session, Ulta Beauty (ULTA - Free Report) was down 3.42% at $493.27. The stock trailed the S&P 500, which registered a daily loss of 0.52%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 0.32%.

The beauty products retailer's shares have seen an increase of 6.5% over the last month, surpassing the Retail-Wholesale sector's gain of 3.74% and the S&P 500's gain of 3.3%.

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 27, 2026. The company's upcoming EPS is projected at $6.17, signifying a 6.75% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.97 billion, indicating a 6.45% increase compared to the same quarter of the previous year.

ULTA's full-year Zacks Consensus Estimates are calling for earnings of $28.78 per share and revenue of $13.21 billion. These results would represent year-over-year changes of +12.25% and +6.62%, respectively.

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. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% increase. Right now, Ulta Beauty possesses a Zacks Rank of #2 (Buy).

Looking at valuation, Ulta Beauty is presently trading at a Forward P/E ratio of 17.75. This signifies a premium in comparison to the average Forward P/E of 15.93 for its industry.

One should further note that ULTA currently holds a PEG ratio of 1.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Retail - Miscellaneous industry was having an average PEG ratio of 1.76.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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