Ulta Beauty (ULTA) ended the recent trading session at $412.23, demonstrating a -0.04% swing from the preceding day's closing price. This change lagged the S&P 500's 0.73% gain on the day. Elsewhere, the Dow saw a downswing of 0.64%, while the tech-heavy Nasdaq appreciated by 1.61%.
Heading into today, shares of the beauty products retailer had gained 12.6% over the past month, outpacing the Retail-Wholesale sector's gain of 9.91% and the S&P 500's gain of 9.07% in that time.
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. It is anticipated that the company will report an EPS of $5.73, marking a 11.44% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.79 billion, up 2.19% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $23.01 per share and a revenue of $11.57 billion, demonstrating changes of -9.19% and +2.41%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Ulta Beauty. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. Currently, Ulta Beauty is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Ulta Beauty is presently trading at a Forward P/E ratio of 17.92. For comparison, its industry has an average Forward P/E of 14.74, which means Ulta Beauty is trading at a premium to the group.
Meanwhile, ULTA's PEG ratio is currently 2.45. 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 average PEG ratio for the Retail - Miscellaneous industry stood at 2.45 at the close of the market yesterday.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 63, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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