Ulta Beauty (ULTA) Increases Despite Market Slip: Here's What You Need to Know
In the latest trading session, Ulta Beauty (ULTA) closed at $556.32, marking a +1.19% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq decreased by 0.13%.
The beauty products retailer's stock has climbed by 11.38% in the past month, exceeding the Retail-Wholesale sector's gain of 6.92% and the S&P 500's gain of 4.74%.
The investment community will be paying close attention to the earnings performance of Ulta Beauty in its upcoming release. The company is slated to reveal its earnings on March 14, 2024. The company's upcoming EPS is projected at $7.49, signifying a 12.13% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.52 billion, reflecting an 8.95% rise from the equivalent quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ulta Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.19% higher. Right now, Ulta Beauty possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Ulta Beauty is presently trading at a Forward P/E ratio of 20.21. This signifies a premium in comparison to the average Forward P/E of 13.31 for its industry.
Investors should also note that ULTA has a PEG ratio of 2.26 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. The Retail - Miscellaneous industry had an average PEG ratio of 2.34 as trading concluded yesterday.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 39% 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
