Ulta Beauty (ULTA) Declines More Than Market: Some Information for Investors
In the latest market close, Ulta Beauty (ULTA) reached $546.54, with a -0.63% movement compared to the previous day. This change lagged the S&P 500's 0.12% loss on the day. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.41%.
The beauty products retailer's shares have seen an increase of 8.84% over the last month, surpassing the Retail-Wholesale sector's gain of 1.32% and the S&P 500's gain of 4.83%.
The investment community will be closely monitoring the performance of Ulta Beauty in its forthcoming earnings report. The company is scheduled to release its earnings on March 14, 2024. The company is expected to report EPS of $7.48, up 11.98% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.52 billion, indicating an 8.95% growth compared to the corresponding quarter of the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ulta Beauty. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. Ulta Beauty is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Ulta Beauty's current valuation metrics, including its Forward P/E ratio of 20.33. This represents a premium compared to its industry's average Forward P/E of 12.75.
Meanwhile, ULTA's PEG ratio is currently 2.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Miscellaneous industry held an average PEG ratio of 2.37.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 31% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 Inc. (ULTA) : Free Stock Analysis Report
