Ulta Beauty (ULTA) closed at $526.66 in the latest trading session, marking a -1.58% move from the prior day. The stock’s change was less than the S&P 500’s daily loss of 0.38%. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.13%.
Prior to today’s trading, shares of the beauty products retailer had gained 0.43% lagged the Retail-Wholesale sector’s gain of 11.17% and the S&P 500’s gain of 11.41%.
Investors will be eagerly watching for the performance of Ulta Beauty in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $6.9, reflecting a 2.99% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.08 billion, up 8.16% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $28.45 per share and a revenue of $13.22 billion, demonstrating changes of +10.96% and +6.69%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Ulta Beauty. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. Ulta Beauty is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Ulta Beauty is presently being traded at a Forward P/E ratio of 18.81. This signifies a premium in comparison to the average Forward P/E of 15.11 for its industry.
Meanwhile, ULTA’s PEG ratio is currently 1.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. As of the close of trade yesterday, the Retail – Miscellaneous industry held an average PEG ratio of 1.86.
The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 41% of all 250+ industries.