Ulta Beauty (ULTA) ended the recent trading session at $513.88, demonstrating a -1.04% change from the preceding day's closing price. This change lagged the S&P 500's 0.3% loss on the day. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.38%.
Heading into today, shares of the beauty products retailer had gained 11% over the past month, outpacing the Retail-Wholesale sector's gain of 2.65% and the S&P 500's gain of 3.64%.
The upcoming earnings release of Ulta Beauty will be of great interest to investors. In that report, analysts expect Ulta Beauty to post earnings of $4.87 per share. This would mark a year-over-year decline of 8.11%. At the same time, our most recent consensus estimate is projecting a revenue of $2.6 billion, reflecting a 1.7% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $23.42 per share and a revenue of $11.64 billion, signifying shifts of -7.58% and +3.04%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Ulta Beauty. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.15% higher. Ulta Beauty currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Ulta Beauty currently has a Forward P/E ratio of 22.17. This indicates a premium in contrast to its industry's Forward P/E of 15.27.
We can also see that ULTA currently has a PEG ratio of 3.14. 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 2.99.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 194, positioning it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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