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Ulta Beauty (ULTA) Gains But Lags Market: What You Should Know
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Ulta Beauty (ULTA - Free Report) closed at $363.74 in the latest trading session, marking a +1.37% move from the prior day. This move lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%.
Heading into today, shares of the beauty products retailer had lost 12.98% over the past month, lagging the Retail-Wholesale sector's loss of 11.09% and the S&P 500's loss of 7.36% in that time.
Ulta Beauty will be looking to display strength as it nears its next earnings release. On that day, Ulta Beauty is projected to report earnings of $4.48 per share, which would represent 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.15 per share and revenue of $8.6 billion, which would represent changes of +268.03% and +39.75%, respectively, from the prior year.
It is also important to note the recent changes 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ulta Beauty currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Ulta Beauty has a Forward P/E ratio of 20.92 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.07.
It is also worth noting that ULTA currently has a PEG ratio of 1.27. 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. The Retail - Miscellaneous industry currently had an average PEG ratio of 0.65 as of yesterday's close.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Ulta Beauty (ULTA) Gains But Lags Market: What You Should Know
Ulta Beauty (ULTA - Free Report) closed at $363.74 in the latest trading session, marking a +1.37% move from the prior day. This move lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%.
Heading into today, shares of the beauty products retailer had lost 12.98% over the past month, lagging the Retail-Wholesale sector's loss of 11.09% and the S&P 500's loss of 7.36% in that time.
Ulta Beauty will be looking to display strength as it nears its next earnings release. On that day, Ulta Beauty is projected to report earnings of $4.48 per share, which would represent 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.15 per share and revenue of $8.6 billion, which would represent changes of +268.03% and +39.75%, respectively, from the prior year.
It is also important to note the recent changes 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ulta Beauty currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Ulta Beauty has a Forward P/E ratio of 20.92 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.07.
It is also worth noting that ULTA currently has a PEG ratio of 1.27. 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. The Retail - Miscellaneous industry currently had an average PEG ratio of 0.65 as of yesterday's close.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.