In the latest trading session, Ulta Beauty (ULTA) closed at $667.18, marking a -2.32% move from the previous day. This change lagged the S&P 500’s 1.57% loss on the day. Elsewhere, the Dow saw a downswing of 1.34%, while the tech-heavy Nasdaq depreciated by 2.04%.
Prior to today’s trading, shares of the beauty products retailer had gained 2.89% outpaced the Retail-Wholesale sector’s loss of 4.94% and the S&P 500’s loss of 0.29%.
Market participants will be closely following the financial results of Ulta Beauty in its upcoming release. The company’s earnings per share (EPS) are projected to be $7.93, reflecting a 6.26% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.82 billion, up 9.62% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $25.56 per share and a revenue of $12.36 billion, signifying shifts of +0.87% and +9.46%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Ulta Beauty. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.27% upward. Ulta Beauty currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Ulta Beauty is presently trading at a Forward P/E ratio of 24.04. This expresses a premium compared to the average Forward P/E of 19.84 of its industry.
We can also see that ULTA currently has a PEG ratio of 3.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. As the market closed yesterday, the Retail – Miscellaneous industry was having an average PEG ratio of 2.75.
The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 36% of all 250+ industries.
