In the most recent trading session, Ulta Beauty (ULTA) closed at $381.78, up +1.5% from the previous day. This stock price movement outpaced the 0.7% daily gain of the S&P 500. Meanwhile, the Dow recorded a 0.01% gain and the tech-heavy Nasdaq added 1.1%.
Shares of the beauty products retailer had lost 7.81% over the past month, lagging the Retail & Wholesale sector’s gain of 1.98% and the S&P 500’s gain of 4.03%.
The investment community will be keeping a close eye on Ulta Beauty’s earnings performance in its upcoming announcement. The company is scheduled to release its earnings on May 30, 2024. In that report, analysts expect Ulta Beauty to post earnings of $6.24 per share, which would represent a 9.3% decrease year-over-year. Meanwhile, our latest consensus estimate is calling for revenue of $2.73 billion, representing a 3.47% increase year-over-year.
For the full year, our Zacks Consensus Estimates are projecting earnings of $26.41 per share and revenue of $11.72 billion, which would represent changes of +1.46% and +4.58%, respectively, from the prior year.
Investors should also keep an eye on any recent changes to analyst estimates for Ulta Beauty. These changes help indicate that short-term business trends are constantly shifting. As a result, positive changes in estimates suggest that analysts have a favorable outlook for the company’s business health and profitability.
Our research shows that these estimate revisions are directly correlated with proximate team stock price movements, and to capitalize on this, we have created the Zacks Rank, a proprietary model which incorporates these estimate changes and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a proven outside-audited track record of outperformance, with #1 ranked stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.51% lower. Ulta Beauty currently has a Zacks Rank #3 (Hold).
Investors should also note Ulta Beauty’s current valuation metrics, including its Forward P/E ratio of 14.24, which marks a premium compared to its industry’s average Forward P/E ratio of 12.51.
It’s also important to note that ULTA currently has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, except the PEG ratio also takes into account a company’s expected earnings growth rate. The average PEG ratio for the Retail – Other industry was 1.56 as of yesterday’s close.
The Retail – Miscellaneous industry is a part of the Retail – Wholesale sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to track all of these stock-moving metrics and more by utilizing Zacks.com during the coming trading sessions.
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Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
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