Yahoo Finance Ulta Beauty (ULTA) Outpaces Stock Market Gains: What You Should Know
Ulta Beauty (ULTA) closed the most recent trading day at $524.96, moving +1.34% from the previous trading session. This change outpaced the S&P 500's 1.29% gain on the day. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%.
Prior to today's trading, shares of the beauty products retailer had gained 6.86% over the past month. This has outpaced the Retail-Wholesale sector's gain of 6.05% and the S&P 500's gain of 5.64% 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 $5.48 per share, which would represent year-over-year growth of 1.29%. Our most recent consensus estimate is calling for quarterly revenue of $3 billion, up 9.95% from the year-ago period.
Any recent changes to analyst estimates for Ulta Beauty should also be noted by investors. 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. 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.
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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Ulta Beauty is currently a Zacks Rank #3 (Hold).
In terms of valuation, Ulta Beauty is currently trading at a Forward P/E ratio of 21.42. This represents a premium compared to its industry's average Forward P/E of 16.28.
It is also worth noting that ULTA currently has a PEG ratio of 1.56. 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. ULTA's industry had an average PEG ratio of 1.87 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 169, which puts it in the bottom 33% 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.
To follow ULTA in the coming trading sessions, be sure to utilize Zacks.com.
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Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
