Ulta Beauty (ULTA) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ULTA broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.
ULTA has rallied 5.8% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests ULTA could be on the verge of another move higher.
Looking at ULTA's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on ULTA for more gains in the near future.
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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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