In the latest trading session, Ulta Beauty (ULTA) closed at $382.91, marking a -0.26% move from previous day. The stock’s performance lagged the S&P 500’s daily gain of 1.23%. Elsewhere, the Dow rose 1.02% and the tech-heavy Nasdaq rose 1.43%.
Shares of the beauty products retailer have gained 3.75% over the past month, outpacing the Retail-Wholesale sector’s gain of 0.58% and the S&P 500’s decline of 0.54%.
Analysts and investors alike will be keeping an eye on Ulta Beauty’s performance in its upcoming earnings release. On that day, Ulta Beauty is expected to report earnings of $4.45 per share, which would represent a year-over-year decline of 12.23%. At the same time, our most recent consensus estimate is calling for revenue of $2.49 billion, up 0.04% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.07 per share and revenue of $11.19 billion, which would represent changes of -11.37% and -0.17%, respectively, from the prior year. There is.
Investors should also note any recent adjustments to analyst estimates for Ulta Beauty. These latest adjustments often reflect changes in short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research shows that these estimate revisions are directly correlated with near-term stock price momentum. Investors can take advantage of this by using the Zacks Rank. This model takes these estimate changes into account and provides a simple and practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has an impressive, outside-audited history of outperformance, with #1 stocks having an average annual +25% profit. The 30-day Zacks Consensus EPS estimate has moved 0.61% lower. Ulta Beauty currently boasts a Zacks Rank #3 (Hold).
In terms of valuation, Ulta Beauty is currently trading at a Forward P/E ratio of 16.64. This is a premium compared to its industry’s average Forward P/E of 12.71.
It is also important to note that ULTA is currently trading with a PEG ratio of 2.21. This metric is used similarly to the famous P/E, but the PEG ratio also takes into account a stock’s expected earnings growth rate. As of yesterday’s close, the average PEG ratio for the Retail-Other industry was 2.21.
The Retail – Other industry is part of the Retail – Wholesale sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of over 250 industries.
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