Yahoo Finance Ulta Beauty (ULTA) Outperforms Broader Market: What You Need to Know
Ulta Beauty (ULTA) closed at $410.04 in the latest trading session, marking a +0.9% move from the prior day. This move outpaced the S&P 500's daily gain of 0.32%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.35%.
Heading into today, shares of the beauty products retailer had lost 22.28% over the past month, lagging the Retail-Wholesale sector's loss of 1.39% and the S&P 500's loss of 2% in that time.
Market participants will be closely following the financial results of Ulta Beauty in its upcoming release. The company's upcoming EPS is projected at $6.26, signifying a 9.01% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.75 billion, up 4.36% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $26.55 per share and a revenue of $11.82 billion, demonstrating changes of +2% and +5.48%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ulta Beauty. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.47% downward. Ulta Beauty is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Ulta Beauty currently has a Forward P/E ratio of 15.31. For comparison, its industry has an average Forward P/E of 12.4, which means Ulta Beauty is trading at a premium to the group.
Meanwhile, ULTA's PEG ratio is currently 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
