In the latest trading session, Ulta Beauty (ULTA) closed at $401.26, marking a -1.26% move from the previous day. This change lagged the S&P 500’s 0.13% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Prior to today’s trading, shares of the beauty products retailer had lost 1.01% over the past month. This has lagged the Retail-Wholesale sector’s gain of 8.19% and the S&P 500’s gain of 5.55% in that time.
Investors will be hoping for strength from Ulta Beauty as it approaches its next earnings release. In that report, analysts expect Ulta Beauty to post earnings of $4.78 per share. This would mark year-over-year growth of 4.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.18 billion, up 10.81% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Ulta Beauty. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Ulta Beauty is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, Ulta Beauty is holding a Forward P/E ratio of 20.24. Its industry sports an average Forward P/E of 10.27, so we one might conclude that Ulta Beauty is trading at a premium comparatively.
Investors should also note that ULTA has a PEG ratio of 1.9 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 currently had an average PEG ratio of 1.57 as of yesterday’s close.
The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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
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