The latest trading session saw Ulta Beauty (ULTA) ending at $390.25, denoting a +0.99% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 0.55%.
Shares of the beauty products retailer have appreciated by 5.43% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 0.19% and the S&P 500's loss of 0.84%.
Market participants will be closely following the financial results of Ulta Beauty in its upcoming release. The company plans to announce its earnings on May 29, 2025. The company's upcoming EPS is projected at $5.73, signifying a 11.44% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.79 billion, up 2.21% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $23.02 per share and revenue of $11.58 billion. These totals would mark changes of -9.16% and +2.49%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Ulta Beauty. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Ulta Beauty presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Ulta Beauty currently has a Forward P/E ratio of 16.78. This signifies a premium in comparison to the average Forward P/E of 13.72 for its industry.
We can also see that ULTA currently has a PEG ratio of 2.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.5 based on yesterday's closing prices.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 188, finds itself in the bottom 25% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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