|Bid||226.01 x 1400|
|Ask||0.00 x 1300|
|Day's Range||225.53 - 227.94|
|52 Week Range||224.43 - 368.83|
|Beta (3Y Monthly)||1.34|
|PE Ratio (TTM)||19.22|
|Earnings Date||Dec 5, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||293.38|
Coty (COTY) gains from continued advancements in the Luxury business and the digital platform. However, sluggishness in the Consumer Beauty segment is a worry.
Data shows that if you want to generate alpha and outperform the major indexes, some of the top stocks to buy are companies that practice gender diversity.Catalyst, the global nonprofit dedicated to building workplaces for women that work, has done exhaustive research into why diversity and inclusion matter. Among its findings: * Companies pay something of a self-imposed penalty for lack of diversity. That is, those companies that poorly practice gender and ethnic/cultural diversity were 29% less likely to experience profitability above the industry average. * A study of U.S. companies in the MSCI World Index between 2011 and 2016 found that "companies beginning with at least three women on their boards produced median gains of 10% ROE and 37% Earnings Per Share" over the five-year period. Companies with fewer women on their boards delivered less growth in these two important metrics. * A 2016 study by Intel and Dalberg Global Development Advisors found that tech companies that practiced diversity had higher revenues, profits, and market value than those that didn't. According to the study, diversity was worth $320 billion-$390 billion in increased market value by closing the gender gap in leadership.In short, investing in gender-diverse stocks isn't just a moral stance - it's financially rewarding. For investors looking for ways to get in, here are 10 top stocks that show gender diversity counts. SEE ALSO: All 30 Dow Stocks Ranked: The Analysts Weigh In
Ulta Beauty beauty stock has fallen 33% in nine trading days. Weak makeup sales are affecting many beauty and skincare product manufacturers and retailers.
Shares of Ulta Beauty (NASDAQ:ULTA) have certainly had a rough time of it over the past few weeks, dropping over 100 points. ULTA stock has fallen over 30% since reporting a major earnings disappointment on Aug. 29. While both the earnings and guidance were undoubtedly a downer, the negative reaction in the ULTA stock price is now overdone. Look for it to rebound over the coming months.Source: Jonathan Weiss / Shutterstock.com The earnings report was the impetus behind the recent bloodbath in ULTA stock. The company missed on both the top and bottom line. Earnings per share were $2.76, somewhat shy of analyst expectations of $2.80. Revenues were also a tad light, checking in at $1.67 billion versus consensus of $1.68 billion. Same store sales grew only 6.2% compared to the 6.6% forecast. The company also lowered guidance from $12.93 to $11.96. No doubt bad, but not 100-point drop bad.InvestorPlace contributor Luke Lango did a superb job of drilling down into the fundamentals for Ulta in his well-researched article. He notes two reasons to buy the dip -- namely that the short-term headwinds will pass and that ULTA stock is now attractively valued. I agree wholeheartedly on both his points and expect ULTA to find its footing soon.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell in Market-Cursed September ULTA stock is definitely getting attractive on a fundamental basis. Shares are now trading at the by far the cheapest price-to-earnings ratio over the past 10 years with a current multiple under 20. Other traditional valuation metrics, such as Price/Sales, Price/Book and Price/Cash Flow are also at extreme discounts to the five-year average. It is important to remember that although growth is slowing, ULTA still expects to grow at 10% pace. ULTA Stock ChartsULTA is getting extremely oversold from a technical perspective. The five-day relative strength index reached readings well below 20 before finally turning higher. The last time this metric was so pessimistic marked a significant low last December. Moving average convergence/divergence also reached an extreme, printing near -10 which marked a new recent low. Bollinger Percent B got to extremes rarely seen with a reading of -50 before finally breaking back into positive territory. ULTA stock is trading at a massive discount to the 20-day moving average, another sign the carnage may be getting overdone.More importantly, Ulta stock bounced sharply off major support at $225 yesterday. ULTA opened lower on the day and at new recent lows, only to immediately change course and close sharply higher on the day. This type of reversal pattern is many times emblematic of a significant low in the stock. The selling finally looks exhausted and the buyers are now in charge. It is even more powerful near major support following such a brutal drop in Ulta stock. How to Trade Ulta StockLong-term investors should look to add ULTA stock to their portfolios on any meaningful weakness. Implied volatility is still relatively high owing to the massive drop, so selling a covered call against the stock makes sense. The Jan $270 call fetches $7.00 and provides a 3% downside buffer while still allowing for over 13% upside appreciation.Option players may want to take advantage of the rich option premiums and sell an out of the money bull put spread. Selling the Jan $190/$185 put spread should bring in $1.00 while risking $4.00. Return on risk equates to 25%. The short $190 strike price provides a 15% downside cushion to the $231.42 closing price of ULTA stock.Tim may hold some of the aforementioned securities in one or more of his newsletters. Anyone interested in finding out more about Tim and his option-based strategies can go to https://marketfy.com/item/options-and-volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Ulta Stock Is Beginning to Look Pretty Again appeared first on InvestorPlace.
With 99% of S&P 500 companies having reported numbers so far, it's safe to say that the second-quarter earnings season is essentially over. How'd it go? Very, very mixed.The numbers were broadly better than expected -- more than half of companies reported better revenue numbers than expected, while three-fourths of companies reported better profit numbers than expected. But, the beats weren't very compelling, and things are slowing -- the market's revenue growth rate in Q2 2019 was the slowest since Q3 2016, while the profit growth rate was negative.Broadly, then, it wasn't a great earnings season. But, it wasn't an awful one, either.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHaving said that, the second-quarter earnings season was awful for a handful of stocks, which bucked the broader market trend and reported worse-than-expected second-quarter revenues and profits. Many of these stocks were hammered, considering the sentiment backdrop during Q2 wasn't great.Which stocks got killed this earnings season? And will they remain in a downtrend for the foreseeable future? * 10 Healthcare Stocks to Buy Despite the Headlines Let's answer those questions by taking a deeper look at seven stocks that flopped this earnings season -- all of them are down more than 20% since they reported earnings -- and see whether these stocks have any bounce-back potential. Worst Stocks That Flopped This Earnings Season: Ulta (ULTA)Source: Jonathan Weiss / Shutterstock.com Loss Since Earnings Report: 30%It wasn't a kind earnings season for retailers, as trade war woes broadly weighed on management sentiment and resulted in depressed back-half 2019 outlooks. But, for cosmetics retailer Ulta (NASDAQ:ULTA), the second-quarter earnings season was particularly ugly.In late August, Ulta reported second-quarter numbers that missed everywhere. The headline revenue and earnings numbers both missed expectations. Comparable sales growth in the quarter came up shy of estimates. Margins fell short of estimates, too. The full-year revenue growth, comparable sales growth, margin and profit guides were all cut in a big way -- to well-below consensus marks.In response to the across-the-board miss quarter, ULTA stock plunged -- by about 30%. It now trades at its lowest levels since Christmas Eve 2018, when the broader indices were flirting with bear market territory.Can the stock rebound from these depressed levels? I think so. The secular growth drivers in the cosmetics industry remain favorable, supported by Selfie Generation consumers who are obsessed with looking good. Ulta still dominates this industry. The only problem is that after several years of red-hot growth, the industry is cooling off in 2019. Historically speaking, such cooling off periods are never that big, and never last that long.As such, the macro backdrop will improve here. Probably by 2020. When it does, Ulta's numbers will bounce back, and ULTA stock will rebound in a big way. Uber (UBER)Source: NYCStock / Shutterstock.com Loss Since Earnings Report: 28%Ride-sharing giant Uber (NYSE:UBER) has been a public company for about three months now. Over those three months, not only did UBER not get an IPO honeymoon, but the stock has actually been through a tremendous amount of pain -- headlined by the stock's huge plunge following its latest earnings report.In early August, Uber reported second-quarter numbers that missed estimates across the board. The headline revenue and profit numbers missed Street estimates. So did bookings and monthly active platform consumers. Perhaps more importantly, top-line growth metrics (revenue growth, bookings growth and user growth) all slowed dramatically from Q1, while core platform margins actually deteriorated year-over-year.In other words, Uber put up a quarter that both missed estimates by a wide margin, and illustrated that the company's growth trajectory is flattening out while margins aren't improving.That's a losing combination. Thus, it should be no surprise that since the Q2 print, UBER stock has shed about 30%. * 7 Automotive Stocks to Buy Now Is there rebound potential here? Yes. But, only in the long run. Ride-sharing still projects as the next big thing in the transportation world, and at scale, the vast majority of transportation will be done through ride-sharing. At scale, then, Uber will be a very big company -- much bigger than it is today. But, Uber has lost its stride at the moment. Until the company gets that winning stride back through reinvigorated growth or improving margins, UBER stock will have a tough time rebounding from here. Beyond Meat (BYND)Source: calimedia / Shutterstock.com Loss Since Earnings Report: 27%Once one of the hottest stocks on Wall Street, plant-based meat company Beyond Meat (NASDAQ:BYND), went ice cold this earnings season after the company reported second-quarter numbers that -- while good -- didn't quite live up to lofty investor expectations.In late July, Beyond Meat reported second-quarter numbers that were actually pretty good. Revenues rose nearly 300% year-over-year and topped Street estimates. Margins improved meaningfully, and came in well ahead of expectations. The full-year revenue and adjusted EBITDA guides were really good. But, in the earnings report, Beyond Meat also announced a secondary offering that spooked investors -- mostly because the offering was priced at $160 per share, while the stock was trading above $200 per share at the time.In other words, while Beyond Meat did report blowout second-quarter numbers, management also confirmed in that report through a secondary offering that above $200, BYND stock was overvalued.The stock has naturally sold off ever since, but has found solid footing in that $150 to $160 range, or right around where the secondary offering was priced. That's a healthy sign. It's also a healthy sign that ever since the Q2 earnings print, the plant-based meat craze has only gained more momentum with more fast-casual chain contract wins.Broadly, then, Beyond Meat's secular growth narrative remains very robust. The post-Q2 earnings sell-off was just a natural correction following a parabolic run higher. After the stock consolidates in the $150 to $160 range for a few more months, BYND stock should be ready to resume its secular march higher. This is a long term winner. Etsy (ETSY)Source: kenary820 / Shutterstock.com Loss Since Earnings Report: 27%Another red hot stock that went ice cold this earnings season is arts and crafts e-commerce marketplace Etsy (NASDAQ:ETSY).In early August, Etsy reported second quarter numbers that were mixed. Earnings topped expectations, and the full-year revenue and volume growth guides were both lifted. At the same time, though, revenues missed expectations, and the full-year EBITDA margin guide was cut. The big problem is that heading into the print, ETSY stock was priced for perfect, not mixed (the stock traded at over 60-times forward earnings at the time).Thus, mixed results produced a huge sell-off in ETSY stock which has lasted ever since. Since that early August earnings report, ETSY stock has shed nearly 30%.Can the stock rebound from here? I think so. This is still a big growth company (33% revenue growth projected this year) supported by secular e-commerce adoption drivers and protected by a moat of over 2 million active sellers and 40 million active buyers. Plus, there are some pretty big growth initiatives that are just starting to rollout, including free shipping on orders over $35 and an in-platform ads business for its sellers. Sure, these growth initiatives cost money to get going (hence the reduced margin guide for 2019), but they are ultimately very additive to the long-term growth narrative. * 7 Low-Risk Mutual Funds to Buy Now Thus, I think ETSY stock can and will bounce back from here. Technical support may not arrive until the mid-$40's, so investors may want to wait for that support to show up. But, in the long run, this stock has the firepower to run back toward $60-plus prices. Under Armour (UAA)Source: 2p2play / Shutterstock.com Loss Since Earnings Report: 33%Yet another red-hot stock that went ice cold this earnings is athletic apparel brand Under Armour (NYSE:UAA).In late July, Under Armour reported second quarter numbers that simply weren't that good. Sure, earnings topped expectations. But, revenues missed expectations, and revenue growth was yet again a meager 3%, while North American revenues continued to decline. Also, sure, gross margins were up big, but they were supposed to be up big, and the company didn't drive any positive operating leverage, so operating margin expansion wasn't as big as investors were hoping for.Big picture, Under Armour's second-quarter print confirmed that this is a slow growth company with margins that are gradually moving -- not rushing -- higher. Heading into the print, UAA stock was priced for so much more. That's why the stock has collapsed more than 30% since the print.Will the stock rebound from here? Yes. For three big reasons.First, under $20, UAA stock is now undervalued relative to its long-term growth potential. Second, the stock is running into some major technical support levels, which have historically signaled a bottom in the stock before a substantial recovery rally. Third, trade war tensions, which have weighed on the entire athletic apparel sector for the past month, should ease going forward from here, providing an upward sentiment lift for UAA stock. iRobot (IRBT)Source: Grzegorz Czapski / Shutterstock.com Loss Since Earnings Report: 34%Consumer robotics leader iRobot (NASDAQ:IRBT) both manufactures a lot of product in China and sells a lot of product into China. As such, this company finds itself at the epicenter of the trade war, so ever since the trade war escalated to a new level back in April 2019, IRBT stock has been under tremendous pressure.That tremendous pressure continued this earnings season. In late July, iRobot reported second-quarter numbers that comprised slowing revenue growth trends and a big full-year 2019 revenue guide cut, which implied that this slowdown is set to continue for the foreseeable future. IRBT plunged after the report, and because trade relations have only deteriorated since then, it has continued to drop into early September.From late July to early September, IRBT stock has dropped 34%. The stock is now more than 50% off its late April 2019 highs.Is a big rebound coming? In the long run, yes; iRobot is the leader in the secular growth consumer robotics space, which is on the cusp of going mainstream. Over the next few years, robotic vacuum cleaners, lawnmowers, car cleaners etc. will become the household norm, and many of those products will be iRobot products. Thus, in the long run, there's a ton of growth potential here, the sum of which should drive IRBT stock higher from today's depressed prices. * 10 Stocks to Sell in Market-Cursed September But, this stock also has a ton of trade war exposure, and until tariffs go away or get reduced, it's tough to see investors wanting to "buy the dip" in IRBT stock. So long as "buy the dip" appetite remains depressed, IRBT stock will remain depressed, too. Canopy Growth (CGC)Source: Jarretera / Shutterstock.com Loss Since Earnings Report: 24%Pot stocks had a really tough time this earnings season amid relatively sluggish revenue growth and depressed margins, and the leader of the pack -- Canopy Growth (NYSE:CGC) -- was no exception.Canopy reported first-quarter numbers in mid-August. They were nothing short of awful. Revenues and profits missed by a mile. Margins dropped big year-over-year. Kilograms sold grew only marginally quarter-over-quarter. Revenues actually declined sequentially. The cash balance -- one of the most attractive features of Canopy relative to other pot stocks -- dropped 30% from a year ago.All in all, it was not a good report. Broadly speaking, it confirmed that growth is slowing, profits are still a long way out, and cash burn is a problem that isn't going away any time soon. CGC stock plunged in response. It has stayed in sell-off mode ever since, and today it trades nearly 25% below its Q1 earnings price.Will CGC stock bounce back? Long term, yes. Given its huge growing capacity, global distribution, big balance sheet and Acreage deal to enter the U.S. market, Canopy still projects a leader in the global cannabis market at scale -- and that positioning ultimately implies that Canopy could one day be a $50 billion to $100 billion company. Thus, in the long run, there's huge upside potential here.But, near-term pain will persist for the foreseeable future. Put simply, other cannabis companies are making more progress than Canopy at the current moment, on both the top and bottom-line. Canopy needs to step up its game and regain its competitive edge before investors take a chance on buying what has turned into a falling knife.As of this writing, Luke Lango was long BYND, UAA and CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post 7 Worst Stocks That Flopped This Earnings Season appeared first on InvestorPlace.
Both analysts and investors remained upbeat on the stock before it lost a third of its value in one day Continue reading...
But if you'd like to distract yourself from any portfolio woes you might have by betting on your favorite sports team, that could be an easy option (depending on where you live).
Ulta missed analysts' estimates for earnings, revenue and same-store sales, and also lowered its forward guidance. The stock subsequently plunged from $337 to $228. If this all seems familiar, Ulta dropped hard late last year on a negative earnings report.
Shares of Ulta Beauty (NASDAQ:ULTA) plunged in late August after the cosmetic retailer's second-quarter earnings report missed estimates across the board. ULTA stock dropped a whopping 30% in response, and currently trades at its lowest levels since Christmas Eve 2018.Source: Jonathan Weiss / Shutterstock.com Was the report really that bad? Ostensibly, yes. Ulta missed on everything. In the quarter, comparable sales came in shy of estimates, as did revenues, margins and profits. Management also cut the guide everywhere, citing weakness across the entire cosmetics industry. The company also significantly reduced the sales, comps, margin and profit guides.Broadly speaking, it was about as bad a quarter as Ulta could've reported. Also, heading into the print, ULTA stock was trading at a historically rich 27-times forward price-to-earnings multiple.InvestorPlace - Stock Market News, Stock Advice & Trading TipsConsidering all that, the 30% post-earnings plunge in ULTA stock shouldn't be too surprising. This was an overvalued stock that reported miserable numbers.But, I think this huge selloff in Ulta stock is an opportunity. Why? Two big reasons.First, near-term headwinds in the cosmetics industry won't last. They will pass. When they do, Ulta's numbers will improve. Second, considering its long-term growth potential, ULTA stock is now undervalued, and the stock has sizable upside in the event the numbers do improve from here.I think it may be time to buy the dip in ULTA stock. The quarter was ugly, but this is still a winning stock with a ton of long-term growth firepower. Near-Term Cosmetics Industry Headwinds Won't LastAll the growth trends at Ulta are going in the opposite direction. Comparable sales growth is slowing. Store growth and revenue growth are slowing, too. Expanding margins are turning into compressing margins. Big profit growth is turning into markedly smaller profit growth. * 7 Deeply Discounted Energy Stocks to Buy The theme of Ulta's Q2 conference call was that this adverse growth trend reversal is being driven by a slowdown in the macro U.S. cosmetics industry. Specifically, according to management, what was red-hot growth across the entire U.S. cosmetics category earlier this decade, has slowed meaningfully over the past two years, and actually turned negative in 2019.Against the backdrop of this slowing growth industry, Ulta's top- and bottom-line momentum is similarly slowing.This all makes a ton of sense. The cosmetics industry has been very hot for a long time. It needs to cool off, and as the market goes through this necessary cooling period, Ulta's growth rates will naturally take a hit. Importantly, though, this slowdown won't last.History shows us that any and all slowdowns in the U.S. personal care industry over the past two decades have been small and short-lived. During that stretch, personal care sales have risen at a fairly steady 4% compounded annual growth rate, and there have never been back-to-back years of declines.There's no reason to believe this slowdown will be the exception to the longer running trend. The secular drivers here -- mainly, the proliferation of visual-first social media wherein consumers are sharing pictures and videos of themselves all the time -- imply that consumers still want (need?) to look good, and will continue to spend big on cosmetics.As such, near-term macro U.S. cosmetics headwinds aren't here to stay for the long run. They will pass. When they do, this whole market will resume on its secular march higher. Ulta Is Now UndervaluedDespite the horrible quarter, Ulta is still a growth company in a growth industry. For a growth company in a growth industry, ULTA stock is materially undervalued at the current moment -- leaving room for substantial upside when the numbers improve.Everything is slowing at Ulta right now. Yet, the company is still projected to grow sales at a 10%-plus rate this year alongside 10%-plus profit growth. To be sure, most of this growth is driven by unit growth (7% unit growth projected this year), and margins are in decline. But, management projects that comps will remain solidly positive (5% for the year), and margins should rebound when the cosmetics industry rebounds.In the big picture, Ulta will continue to serve as a physical commerce launching board for digitally native and emerging cosmetics brands over the next several years, at the same time that it continues to expand its physical retail footprint. As it does both of those things, the company will continue to gain market share in the 4% growth U.S. cosmetics industry. That implies high single-digit revenue growth as the norm going forward.Margins should creep higher as high single-digit revenue growth should be enough to drive marginally positive operating leverage. Buybacks will remain in play, too. All together, Ulta should be a low double-digit profit grower for the next several years. Realistically, that pegs earnings per share somewhere north of $20 by 2025.Based on a growth stock average 20-times forward multiple, that implies a 2024 price target for ULTA stock of over $400. Discounted back by 10% per year, that implies a 2019 price target of about $250 -- markedly above today's $230 price tag. Bottom Line on ULTA StockNear-term pain in ULTA stock won't last. Heading into the Q2 print, you had an overvalued stock on a decelerating growth trajectory. Now, you have an undervalued stock with the opportunity to re-accelerate growth over the next few quarters.Consequently, it appears that the worst of the Ulta correction is in the rear-view mirror. Going forward, ULTA stock should rebound from today's depressed levels.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post 2 Reasons to Buy the Dip in Ulta Beauty Stock appeared first on InvestorPlace.
Ulta Beauty is a proven long-term winner, and its 10-year numbers are spectacular, even after figuring in the newly reduced estimates for fiscal 2019.
U.S. stock futures are trading lower this morning, continuing the weakness saw on Friday. Overhead resistance near $2,940 in the S&P 500 has rejected every rally since July's breakdown and last week proved no different. Until buyers can muster the strength to vault back above it, the technical picture will remain bearish.Source: Shutterstock Ahead of the bell, futures on the Dow Jones Industrial Average are down 0.76%, and S&P 500 futures are lower by 0.62%. Nasdaq-100 futures have lost 0.60%.In the options pits, Friday's slide propelled put volume ahead of calls on the session, while overall volume settled near average levels. Approximately 16.1 million calls and 16.5 million puts changed hands.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe pop in put demand spilled over to the CBOE, where the single-session equity put/call volume ratio jumped to 0.68 -- a one-week high. Meanwhile, the 10-day moving average slipped to 0.67.Options traders zeroed in on earnings reports Friday. Ulta Beauty (NASDAQ:ULTA) shares plunged 30% after the company slashed forward guidance. Workday (NASDAQ:WDAY) slipped below support despite beating earnings estimates. Finally, Shopify (NYSE:SHOP) saw its third down day in a row, offering an attractive buy-the-dip opportunity.Let's take a closer look: Ulta Beauty (ULTA)Ulta Beauty rose from obscurity over the past decade to become one of the biggest gainers of the bull market. But Friday's 30% plunge revealed all is not well with the American chain of beauty stores. As with many high-flying momentum stocks that fail to live up to lofty expectations, ULTA stock was beaten mercilessly after reporting worse-than-expected second-quarter earnings and lowering full-year guidance.Ulta's earnings-per-share grew to $2.76 on $1.67 billion in revenue. While both metrics marked modest growth, the uptick wasn't good enough. Analyst estimates were looking for $2.80 in EPS on $1.75 billion in sales. Citing "headwinds" in the cosmetics market, the company lowered its full-year EPS forecast by almost a buck, from $12.83-$13.03 to $11.86-$12.06. * The 10 Reasons to Buy Alibaba Stock Time will tell if Friday's 30% haircut was sufficient to price in the earnings downshift. The next major support zones to watch are $220, then $200.Options trading exploded with calls outpacing puts on the day. Total activity rocketed to 17x the average daily volume, with 128,030 contracts traded. Calls accounted for 59% of the take.Premiums were pricing in a gap of just under 7%, so the 30% slashing was a monster move. Traders harnessing long volatility plays like straddles or strangles came out massive winners for the event. Workday (WDAY)The trend of selling earnings results continued with Workday ahead of the weekend. The provider of human resources software slipped 5.5% despite reporting better-than-expected numbers.For the quarter, Workday posted earnings of 44 cents per share on revenue of $887.75 million. Both measures bested estimates, but investors wanted even more. With Friday's beatdown, WDAY stock has now fallen 22% off its highs. It now rests below all major moving averages with the 50-day and 20-day both trending lower. Volume patterns aren't helping the bull case either, with multiple distribution days cropping up over the past six weeks.On the options trading front, calls slightly edged out puts in popularity. Activity swelled to 629% of the average daily volume, with 80,254 total contracts traded; 52% of the total came from calls.With the uncertainty of earnings in the rearview mirror, implied volatility plunged to 36% or the 25th percentile of its one-year range. Premiums are now baking in daily moves of $3.97 or 2.2%. Shopify (SHOP)Shopify shares suffered their third straight down day ahead of the weekend amid well-deserved profit-taking. Chart watchers shouldn't be concerned one bit over the bout of selling. It was perfectly benign and was likely due to garden variety register ringing after a substantial $100 rise in SHOP stock.After rallying almost $14 off the lows, SHOP only ended the day down 1.6%. Volume was slightly above average, but nothing high enough to scare the children. All-in-all, I'm taking Shopify's appearance atop the most-active options leaderboard as an excuse to highlight its beautiful uptrend and rock star 2019 performance. The shares are up 178% year-to-date. * 7 Best Tech Stocks to Buy Right Now The cloud-based commerce company saw a sharp uptick in options trading. Total activity swelled to 213% of the average daily volume, with 80,270 contracts traded; 52% of the trading came from call options.Implied volatility ticked up to 29%, landing it at the 26th percentile of its one-year range. Premiums are baking in daily moves of $11.89 or 3.1%. Bull call spreads are my strategy of choice here.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post Tuesday's Vital Data: Ulta, Workday and Shopify appeared first on InvestorPlace.
Ulta Beauty's second-quarter numbers came in below expectations but the retailer could get a sales bump from another Kardashian cosmetics line launching in its stores this fall, and still plans to proceed with plans to open 80 new stores. The company also plans to move forward with remodeling and “refresh” plans for nearly 300 other stores, per Chain Store Age. Net income was up 8 percent to $161.2 million but adjusted earnings per share of $2.76 and a 6.2 percent increase in same-store sales did not meet expectations of $2.80 and 6.6 percent, CSA reported.
An ugly day for Ulta Beauty. Shares of the high-flying cosmetics and skin care retailer sank in early trading Friday, shedding all of their nearly 35% gain this year as ten analysts slashed their price targets on the stock. Triggering the plunge: Ulta cut its profit forecast for the full year and warned that sales would slow. CEO Mary Dillon said the outlook reflects "the headwinds we are currently seeing in the U.S. cosmetics market." That's a huge problem because roughly half of Ulta's annual sales are cosmetics. In the past, trends such as contouring and brow styling required buying several products, but customers are reportedly turning to other beauty items, and sales of mass-market cosmetics have slowed. Ulta blossomed quickly from a little-known chain in 2012 to become a major force in beauty retailing. It lured customers by offering deals on everything from mass-market cosmetics to high-end brands.