In the latest trading session, Ulta Beauty (ULTA) closed at $603.21, marking a +1.96% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.28% for the day. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Prior to today's trading, shares of the beauty products retailer had gained 6.05% outpaced the Retail-Wholesale sector's gain of 4.46% and the S&P 500's gain of 0.67%.
Analysts and investors alike will be keeping a close eye on the performance of Ulta Beauty in its upcoming earnings disclosure. The company is forecasted to report an EPS of $5.6, showcasing a 8.95% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.99 billion, reflecting a 4.54% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $28.95 per share and a revenue of $13.27 billion, demonstrating changes of +12.91% and +7.06%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ulta Beauty. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Ulta Beauty is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Ulta Beauty is currently being traded at a Forward P/E ratio of 20.44. This indicates a premium in contrast to its industry's Forward P/E of 15.69.
We can also see that ULTA currently has a PEG ratio of 1.77. 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 of the close of trade yesterday, the Retail - Miscellaneous industry held an average PEG ratio of 1.77.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Ulta Beauty Inc. (ULTA): Free Stock Analysis Report
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