This is Best Retail Stock to Own in December

Investors are hoping to close out the year strong, with momentum on Wall Street's side after the S&P 500 Index (SPX) scored a seventh-straight monthly win. Ulta Beauty Inc (NASDAQ:ULTA) is among the names that may help traders end 2025 with a bang, after landing on Senior Quantitative Analyst Rocky White's list of 25 best stocks to own in December.

ULTA is the best of three retailers on the list and takes the third top spot overall, going back 10 years. The equity finished the month higher eight times in the last decade, averaging a 4.1% gain.  

The security was last seen trading at $549.33, pacing for a sixth-straight gain while enjoying a 26% year-over-year lead. The shares are comfortably in an uptrend channel, with the psychologically-significant round number $500 catching recent pullbacks.

The stock looks ripe for a short squeeze. Despite recent outperformance, short interest increased 21.5% over the last two reporting periods and now makes up 5.1% of the equity's available float. It would take shorts over three trading days to buy back these bearish bets, at ULTA's average pace of daily trading.

An unwinding of pessimism in the options pits could keep tailwinds blowing, too. At the International Securities (ISE), Cboe Options (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call ratio of 1.17 ranks higher than all but 2% of annual readings.