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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 at $403.78 in the latest trading session, marking a +0.56% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.69%. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the beauty products retailer had gained 8.97% over the past month, outpacing the Retail-Wholesale sector's gain of 8.49% and the S&P 500's gain of 7.88% in that time.
Investors will be hoping for strength from Ulta Beauty as it approaches its next earnings release. On that day, Ulta Beauty is projected to report earnings of $4.43 per share, which would represent year-over-year growth of 8.05%. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 9.92% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Ulta Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 3% higher. Ulta Beauty currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Ulta Beauty currently has a Forward P/E ratio of 21.62. For comparison, its industry has an average Forward P/E of 11.1, which means Ulta Beauty is trading at a premium to the group.
Investors should also note that ULTA has a PEG ratio of 2.11 right now. 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. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.33 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 97, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much 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 at $403.78 in the latest trading session, marking a +0.56% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.69%. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the beauty products retailer had gained 8.97% over the past month, outpacing the Retail-Wholesale sector's gain of 8.49% and the S&P 500's gain of 7.88% in that time.
Investors will be hoping for strength from Ulta Beauty as it approaches its next earnings release. On that day, Ulta Beauty is projected to report earnings of $4.43 per share, which would represent year-over-year growth of 8.05%. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 9.92% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Ulta Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 3% higher. Ulta Beauty currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Ulta Beauty currently has a Forward P/E ratio of 21.62. For comparison, its industry has an average Forward P/E of 11.1, which means Ulta Beauty is trading at a premium to the group.
Investors should also note that ULTA has a PEG ratio of 2.11 right now. 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. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.33 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 97, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.