In the latest close session, Ulta Beauty (ULTA) was down 1.23% at $526.18. The stock fell short of the S&P 500, which registered a gain of 0.03% for the day. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.01%.
The beauty products retailer's stock has climbed by 9.82% in the past month, exceeding the Retail-Wholesale sector's gain of 3.3% and the S&P 500's gain of 3.46%.
Market participants will be closely following the financial results of Ulta Beauty in its upcoming release. The company plans to announce its earnings on August 28, 2025. On that day, Ulta Beauty is projected to report earnings of $4.95 per share, which would represent a year-over-year decline of 6.6%. At the same time, our most recent consensus estimate is projecting a revenue of $2.64 billion, reflecting a 3.49% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $23.55 per share and a revenue of $11.66 billion, demonstrating changes of -7.06% and +3.21%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Ulta Beauty. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.7% higher within the past month. Right now, Ulta Beauty possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Ulta Beauty is presently being traded at a Forward P/E ratio of 22.62. This signifies a premium in comparison to the average Forward P/E of 15.71 for its industry.
It is also worth noting that ULTA currently has a PEG ratio of 3.21. 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 industry had an average PEG ratio of 3.07 as trading concluded yesterday.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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Ulta Beauty Inc. (ULTA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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