Ulta Beauty (ULTA) Surpasses Market Returns: Some Facts Worth Knowing

In the latest trading session, Ulta Beauty (ULTA) closed at $419.27, marking a +1.48% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.2%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.59%.

The the stock of beauty products retailer has fallen by 17.33% in the past month, lagging the Retail-Wholesale sector's loss of 3.47% and the S&P 500's loss of 4.16%.

Analysts and investors alike will be keeping a close eye on the performance of Ulta Beauty in its upcoming earnings disclosure. The company is forecasted to report an EPS of $6.26, showcasing a 9.01% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.75 billion, up 4.36% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $26.55 per share and revenue of $11.82 billion, indicating changes of +2% and +5.48%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Ulta Beauty should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.47% lower within the past month. Currently, Ulta Beauty is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Ulta Beauty is holding a Forward P/E ratio of 15.74. Its industry sports an average Forward P/E of 12.39, so one might conclude that Ulta Beauty is trading at a premium comparatively.

Meanwhile, ULTA's PEG ratio is currently 1.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Miscellaneous was holding an average PEG ratio of 1.71 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 38% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report

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

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