What Investors Need to Know

Ulta Beauty (ULTA) ended the recent trading session at $492.22, demonstrating a -2.57% change from the preceding day’s closing price. The stock’s performance was behind the S&P 500’s daily gain of 0.59%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 1.2%.

Heading into today, shares of the beauty products retailer had lost 5.23% over the past month, lagging the Retail-Wholesale sector’s gain of 3.21% and the S&P 500’s gain of 8.64%.

The investment community will be paying close attention to the earnings performance of Ulta Beauty in its upcoming release. The company is slated to reveal its earnings on June 2, 2026. The company’s earnings per share (EPS) are projected to be $6.9, reflecting a 2.99% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.08 billion, reflecting a 8.16% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $28.45 per share and revenue of $13.22 billion, which would represent changes of +10.96% and +6.69%, respectively, from the prior year.

It’s also important for investors to be aware of any recent modifications to analyst estimates for Ulta Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% downward. At present, Ulta Beauty boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Ulta Beauty is presently trading at a Forward P/E ratio of 17.76. This valuation marks a premium compared to its industry average Forward P/E of 14.21.

It’s also important to note that ULTA currently trades at a PEG ratio of 1.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Retail – Miscellaneous was holding an average PEG ratio of 1.75 at yesterday’s closing price.

The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 39% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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