From a technical perspective, Ulta Beauty (ULTA Quick QuoteULTA – Free Report) is looking like an interesting pick, as it just reached a key level of support. ULTA recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock’s price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock’s price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
Shares of ULTA have been moving higher over the past four weeks, up 5.5%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that ULTA could be poised for a continued surge.
Once investors consider ULTA’s positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 12 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.
Investors may want to watch ULTA for more gains in the near future given the company’s key technical level and positive earnings estimate revisions.
