Jim Cramer Says Wall Street Is "Falling Back in Love With the New Ulta"

Ulta Beauty, Inc. (NASDAQ:ULTA) is one of the stocks Jim Cramer recently looked at. Cramer called it one of his “favorite” companies during the episode, as he commented:

“I always keep an eye on the new high list to understand what’s working. And for the past couple weeks, one of my favorite companies has practically achieved permanent residency status, making a new high almost every day. And I’m talking about Ulta Beauty… Yes, new CEO Kecia Steelman took over a year ago, and boy, she’s managed to orchestrate a pretty impressive turnaround, and that’s why I recommended buying the stock into weakness just a few months ago. But it’s time to revisit it because it’s an even better story…

You’ve got a retailer that is indeed firing on all cylinders. In fact, I’d go so far as to say that it’s looking a lot like the Ulta of old, the innovative growth story that was run by Mary Dillon for so many years before she went to work at Footlocker. Wall Street loved the old Ulta for good reason, and now, it’s falling back in love with the new Ulta. Of course, at this point, we’re no longer early. Ulta’s rallied a quick 27% in just two and a half months since I recommended it. The stock’s not yet super expensive, selling for just over 23 times the year’s earnings estimates. But it’s certainly more expensive than it was before, now trading at a bit of a premium to the overall market versus a slight discount when I recommended it in October… If you didn’t listen to me last time, you know what? I still think you can buy Ulta here and get some exposure to this excellent story, which is not quite a true turnaround story yet, but is definitely a getting much better under new management story now.

If you took my word for it in October and you bought the stock, then it’s a hold. Oh, and congratulations on your quick gains, though. Either way, with Ulta stock white-hot here, I mean white-hot, you should be hoping for a market-wide pullback that gives you a chance to load up on this one at a really good level. The bottom line is that Ulta Beauty continues to look better and better and then better some more. The stock’s certainly run a bit at this point, but I think it’s got more upside as the company is starting this new year with more momentum than at any point in ages.”

Ulta Beauty, Inc. (NASDAQ:ULTA) provides cosmetics, skincare, haircare, and fragrance products. In addition, the company offers in-store beauty services, including hair, makeup, brow, and skin treatments.

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Disclosure: None. This article is originally published at Insider Monkey.