Here's Why Ulta Beauty (ULTA) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Ulta Beauty (ULTA)
Bolingbrook, IL-based, Ulta Beauty Inc., previously known as Ulta Salon, Cosmetics & Fragrance, Inc., is a leading beauty retailer in the United States. Founded in 1990, the company changed its name to Ulta Beauty in January 2017.
ULTA sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Retail - Miscellaneous industry's P/E of 13.9X, shares of Ulta Beauty are trading at a forward P/E of 19.6X. ULTA also has a PEG Ratio of 2.1, a Price/Cash Flow ratio of 16.7X, and a Price/Sales ratio of 2.3X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.04 to $27.05 per share. ULTA has an average earnings surprise of 3.4%.
ULTA should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
