State of the Market: Today's Most Compelling Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Monday, February 4, 2013

 

At StatoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.

 



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
ULTA Salon Cosmetics & Fragrance IncULTA Specialty Stores 9.9-3.93% $95.58

Why We Like The Stock:

ULTA Salon Cosmetics & Fragrance Inc (ULTA) is our most compelling buy today due to the fact that it is a "top-rated stock" (in terms of earnings strength and company/industry performance) in a top-3 sector, Consumer Discretionary. ULTA is currently in a long-term uptrend dating back to early 2009, and looks good in all three terms - short, intermediate, and long. ULTA has pulled back from its all time highs near $102, which represents the short-term upside of a buy at the current price. The stock has been treding higher recently, and currently sits at a good entry point. One of the most compelling aspects of ULTA at this juncture is that it doesn't move with the market, and hasn't been over-extended in recent weeks like many stocks in the Consumer Discretionary sector have (See: Lowes (LOW), AMC Networks (AMCX), Discovery Communications (DISCA), Virgin Media (VMED)). With a tight stop at $95.58 and immediate upside to $102, we like ULTA for a short-term trade.
We Would Be Buyers:

At the current price (~$97.60), or on a pullback to $96.
Company Profile:

Ulta Salon, Cosmetics & Fragrance, Inc. (Ulta) is a beauty retailer, which provides one-stop shopping for prestige, mass and salon products and salon services in the United States. During the year ended January 28, 2012 (fiscal 2011), the Company opened 61 new stores. It operates full-service salons in all of its stores. Its Ulta store format includes an open and modern salon area with approximately eight to 10 stations. The entire salon area is approximately 950 square feet with a concierge desk, skin treatment room, semi-private shampoo and hair color processing areas. Each salon is a full-service salon offering hair cuts, hair coloring and permanent texture, with salons also providing facials and waxing.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  ULTA Salon Cosmetics & Fragrance Inc - Last 3 Months -

  ULTA Salon Cosmetics & Fragrance Inc - Last 12 Months

  ULTA Salon Cosmetics & Fragrance Inc - Last 5 Years

 

 

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.

Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.

 

Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: News Headlines , US Markets , Investing Ideas , Stocks

Referenced Stocks: ULTA

David Moenning


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