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Ulta Beauty (ULTA) Advances While Market Declines: Some Information for Investors

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Ulta Beauty (ULTA - Free Report) closed the latest trading day at $369.20, indicating a +0.08% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.18%. On the other hand, the Dow registered a loss of 0.8%, and the technology-centric Nasdaq increased by 0.27%.

Shares of the beauty products retailer have depreciated by 8.23% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 4.46%.

Analysts and investors alike will be keeping a close eye on the performance of Ulta Beauty in its upcoming earnings disclosure. On that day, Ulta Beauty is projected to report earnings of $4.46 per share, which would represent a year-over-year decline of 12.03%. Our most recent consensus estimate is calling for quarterly revenue of $2.49 billion, unchanged from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $23.06 per share and a revenue of $11.19 billion, signifying shifts of -11.41% and -0.19%, respectively, from the last year.

Any recent changes to analyst estimates for Ulta Beauty should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.65% lower within the past month. Right now, Ulta Beauty possesses a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Ulta Beauty is presently being traded at a Forward P/E ratio of 16. This signifies a premium in comparison to the average Forward P/E of 12.35 for its industry.

Also, we should mention that ULTA has a PEG ratio of 2.12. 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. The average PEG ratio for the Retail - Miscellaneous industry stood at 2.12 at the close of the market yesterday.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 30% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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