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Ulta Beauty (ULTA) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Ulta Beauty (ULTA) closed at $391.34, marking a -0.95% move from the previous day. This change lagged the S&P 500's 0.82% loss on the day.

Prior to today's trading, shares of the beauty products retailer had gained 2.12% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.59% and the S&P 500's gain of 6.74% in that time.

Investors will be hoping for strength from ULTA as it approaches its next earnings release, which is expected to be December 2, 2021. In that report, analysts expect ULTA to post earnings of $2.39 per share. This would mark year-over-year growth of 45.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.89 billion, up 21.53% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.09 per share and revenue of $8.35 billion. These totals would mark changes of +223.82% and +35.77%, respectively, from last year.

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Investors might also notice recent changes to analyst estimates for ULTA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. ULTA is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, ULTA is holding a Forward P/E ratio of 26.19. This represents a premium compared to its industry's average Forward P/E of 11.1.

We can also see that ULTA currently has a PEG ratio of 2.01. 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. ULTA's industry had an average PEG ratio of 1.1 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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Zacks Investment Research