Ulta Beauty (ULTA) ended the recent trading session at $387.14, demonstrating a -1.81% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.77%. Elsewhere, the Dow lost 0.95%, while the tech-heavy Nasdaq lost 0.87%.
The beauty products retailer's shares have seen an increase of 14.98% over the last month, surpassing the Retail-Wholesale sector's gain of 9.54% and the S&P 500's gain of 11.54%.
Investors will be eagerly watching for the performance of Ulta Beauty in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 29, 2025. On that day, Ulta Beauty is projected to report earnings of $5.73 per share, which would represent a year-over-year decline of 11.44%. Simultaneously, our latest consensus estimate expects the revenue to be $2.79 billion, showing a 2.19% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $23.01 per share and a revenue of $11.57 billion, indicating changes of -9.19% and +2.41%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ulta Beauty. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% lower. Ulta Beauty is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Ulta Beauty is presently being traded at a Forward P/E ratio of 17.14. This expresses a premium compared to the average Forward P/E of 14.21 of its industry.
We can also see that ULTA currently has a PEG ratio of 2.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Miscellaneous industry currently had an average PEG ratio of 1.53 as of yesterday's close.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 38% 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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