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Ulta Beauty (ULTA) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Ulta Beauty (ULTA - Free Report) closed at $342.57, marking a -1.18% move from the previous day. This change lagged the S&P 500's daily loss of 0.46%.
Heading into today, shares of the beauty products retailer had lost 1.51% over the past month, outpacing the Retail-Wholesale sector's loss of 1.8% and lagging the S&P 500's gain of 1.69% in that time.
Investors will be hoping for strength from ULTA as it approaches its next earnings release, which is expected to be August 25, 2021. On that day, ULTA is projected to report earnings of $2.22 per share, which would represent year-over-year growth of 204.11%. Meanwhile, our latest consensus estimate is calling for revenue of $1.73 billion, up 40.79% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.17 per share and revenue of $7.84 billion. These totals would mark changes of +161.16% and +27.38%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ULTA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 past month, the Zacks Consensus EPS estimate has moved 0.03% higher. ULTA is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, ULTA is holding a Forward P/E ratio of 28.49. Its industry sports an average Forward P/E of 16.16, so we one might conclude that ULTA is trading at a premium comparatively.
It is also worth noting that ULTA currently has a PEG ratio of 1.73. 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. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Ulta Beauty (ULTA) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Ulta Beauty (ULTA - Free Report) closed at $342.57, marking a -1.18% move from the previous day. This change lagged the S&P 500's daily loss of 0.46%.
Heading into today, shares of the beauty products retailer had lost 1.51% over the past month, outpacing the Retail-Wholesale sector's loss of 1.8% and lagging the S&P 500's gain of 1.69% in that time.
Investors will be hoping for strength from ULTA as it approaches its next earnings release, which is expected to be August 25, 2021. On that day, ULTA is projected to report earnings of $2.22 per share, which would represent year-over-year growth of 204.11%. Meanwhile, our latest consensus estimate is calling for revenue of $1.73 billion, up 40.79% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.17 per share and revenue of $7.84 billion. These totals would mark changes of +161.16% and +27.38%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ULTA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 past month, the Zacks Consensus EPS estimate has moved 0.03% higher. ULTA is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, ULTA is holding a Forward P/E ratio of 28.49. Its industry sports an average Forward P/E of 16.16, so we one might conclude that ULTA is trading at a premium comparatively.
It is also worth noting that ULTA currently has a PEG ratio of 1.73. 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. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.