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Ulta Beauty (ULTA) Surpasses Market Returns: Some Facts Worth Knowing

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The latest trading session saw Ulta Beauty (ULTA - Free Report) ending at $380.08, denoting a +1.82% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.27%. Elsewhere, the Dow saw an upswing of 0.65%, while the tech-heavy Nasdaq appreciated by 0.26%.

The the stock of beauty products retailer has fallen by 7.6% in the past month, lagging the Retail-Wholesale sector's loss of 0.61% and the S&P 500's gain of 2%.

The upcoming earnings release of Ulta Beauty will be of great interest to investors. The company is expected to report EPS of $4.45, down 12.23% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.49 billion, showing a 0.04% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $23.07 per share and a revenue of $11.19 billion, demonstrating changes of -11.37% and -0.17%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Ulta Beauty. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.62% lower within the past month. Ulta Beauty currently has a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Ulta Beauty is holding a Forward P/E ratio of 16.18. This expresses a premium compared to the average Forward P/E of 12.19 of its industry.

Meanwhile, ULTA's PEG ratio is currently 2.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Miscellaneous industry had an average PEG ratio of 2.14.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 145, placing it within the bottom 43% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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