Ulta Beauty (ULTA) ended the recent trading session at $520.38, demonstrating a -2.33% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.11%. On the other hand, the Dow registered a loss of 0.56%, and the technology-centric Nasdaq increased by 0.35%.
Coming into today, shares of the beauty products retailer had lost 14.71% in the past month. In that same time, the Retail-Wholesale sector gained 1.33%, while the S&P 500 gained 0.51%.
The investment community will be paying close attention to the earnings performance of Ulta Beauty in its upcoming release. On that day, Ulta Beauty is projected to report earnings of $6.96 per share, which would represent year-over-year growth of 3.88%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.08 billion, indicating a 8.19% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $28.41 per share and revenue of $13.22 billion, indicating changes of +10.8% and +6.69%, respectively, compared to the previous 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Right now, Ulta Beauty possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Ulta Beauty is currently trading at a Forward P/E ratio of 18.76. This expresses a premium compared to the average Forward P/E of 14.95 of its industry.
We can also see that ULTA currently has a PEG ratio of 1.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Miscellaneous industry held an average PEG ratio of 1.84.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 38% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Ulta Beauty Inc. (ULTA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).