For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why This 1 Growth Stock Should Be On Your Watchlist
Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
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 Growth Style Score of B, and has a VGM Score of A. Earnings and sales are forecasted to increase 5.7% and 19.3% year-over-year, respectively.
13 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.26 to $25.38 per share for 2024. ULTA boasts an average earnings surprise of 12.9%.
Ulta Beauty is also cash rich. The company has generated cash flow growth of 14.4%, and is expected to report cash flow expansion of 18.3% in 2024.
Investors should take the time to consider ULTA for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.
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