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Ulta Beauty (ULTA) Gains As Market Dips: What You Should Know
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Ulta Beauty (ULTA - Free Report) closed the most recent trading day at $353.81, moving +0.3% from the previous trading session. This change outpaced the S&P 500's 0.15% loss on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the beauty products retailer had lost 11.55% over the past month. This has lagged the Retail-Wholesale sector's loss of 11.49% and the S&P 500's loss of 7.66% in that time.
Investors will be hoping for strength from Ulta Beauty as it approaches its next earnings release. In that report, analysts expect Ulta Beauty to post earnings of $4.48 per share. This would mark year-over-year growth of 31.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.7 billion, up 22.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.15 per share and revenue of $8.6 billion. These totals would mark changes of +268.03% and +39.75%, respectively, from last year.
Investors might also notice recent changes to analyst estimates 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 company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ulta Beauty is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Ulta Beauty currently has a Forward P/E ratio of 20.57. This valuation marks a premium compared to its industry's average Forward P/E of 13.83.
It is also worth noting that ULTA currently has a PEG ratio of 1.25. 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. The Retail - Miscellaneous was holding an average PEG ratio of 0.66 at yesterday's closing price.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Ulta Beauty (ULTA) Gains As Market Dips: What You Should Know
Ulta Beauty (ULTA - Free Report) closed the most recent trading day at $353.81, moving +0.3% from the previous trading session. This change outpaced the S&P 500's 0.15% loss on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the beauty products retailer had lost 11.55% over the past month. This has lagged the Retail-Wholesale sector's loss of 11.49% and the S&P 500's loss of 7.66% in that time.
Investors will be hoping for strength from Ulta Beauty as it approaches its next earnings release. In that report, analysts expect Ulta Beauty to post earnings of $4.48 per share. This would mark year-over-year growth of 31.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.7 billion, up 22.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.15 per share and revenue of $8.6 billion. These totals would mark changes of +268.03% and +39.75%, respectively, from last year.
Investors might also notice recent changes to analyst estimates 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 company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ulta Beauty is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Ulta Beauty currently has a Forward P/E ratio of 20.57. This valuation marks a premium compared to its industry's average Forward P/E of 13.83.
It is also worth noting that ULTA currently has a PEG ratio of 1.25. 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. The Retail - Miscellaneous was holding an average PEG ratio of 0.66 at yesterday's closing price.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.