Is Ulta Beauty a good stock to buy now?
Ulta Beauty stock is a solid pick for investors who want to target companies that might benefit from consumers returning to work and more social activities in 2022, DA Davidson analysts say. Analysts increased the price target to $500 a share from $445, and reiterated a Buy rating.Dec 30, 2021
How is Ulta Beauty doing financially?
Net sales increased 49.3% to $5.9 billion compared to $4.0 billion in the first nine months of fiscal 2020, primarily due to the favorable impact from improving consumer confidence, government stimulus payments, and the easing of COVID-19 restrictions, as compared to the first nine months of fiscal 2020.Dec 2, 2021
Is ULTA stock overpriced?
Summary. ULTA' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. ULTA's PE and PEG are worse than the market average leading to a below average valuation score.Dec 13, 2021
Who owns ULTA stock?
Top 10 Owners of Ulta Beauty IncStockholderStakeShares ownedThe Vanguard Group, Inc.10.75%5,623,011BlackRock Fund Advisors5.56%2,909,789SSgA Funds Management, Inc.4.22%2,208,301ClearBridge Investments LLC4.18%2,184,5916 more rows
How much did Ulta make in 2021?
For the Full Year of Fiscal 2021 Gross profit increased to $3.4 billion compared to $1.9 billion in fiscal 2020.Mar 10, 2022
How profitable is Ulta?
Ulta Beauty revenue for the twelve months ending October 31, 2021 was $8.100B, a 29.41% increase year-over-year. Ulta Beauty annual revenue for 2021 was $6.152B, a 16.84% decline from 2020....Compare ULTA With Other Stocks.Ulta Beauty Annual Revenue (Millions of US $)2019$6,7172018$5,8852017$4,8552016$3,9249 more rows
Is Ulta a Chinese company?
Ulta Beauty, Inc., formerly known as Ulta Salon, Cosmetics & Fragrance Inc. and before 2000 as Ulta3, is an American chain of beauty stores headquartered in Bolingbrook, Illinois.
Who are Ulta's competitors?
Ulta Beauty competitors include JD.com, Nordstrom, Birchbox, SEPHORA and Sally Beauty.
Which one is better Ulta or Sephora?
If you're looking for more prestigious brands and sophisticated employees who are true makeup connoisseurs, Sephora has the edge. But if you're looking for one-stop shopping that includes salon services and drugstore brands alongside a more relaxed environment, Ulta should top your list.Mar 29, 2022
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Shares of the cosmetics chain tumbled after it cut its full-year outlook
Ulta Beauty, Inc. engages in the retail of beauty products. Its products include makeup, skin care, tools and brushes, fragrance, and bath and body. The company was founded on January 9, 1990 and is headquartered in Bolingbrook, IL.
What happened
Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market. Follow @tmfbowman
So what
Shares of Ulta Beauty ( NASDAQ:ULTA), the high-flying salon-and-cosmetics chain were cracking today after the retailer lowered its guidance for the year and issued a disappointing second-quarter earnings report.
Now what
On the surface, Ulta turned in another solid quarter. Comparable sales rose 6.2%, revenue was up 12% to $1.67 billion, and earnings per share increased 12.2% to $2.76.
Legend of the fall
Ulta dialed back revenue guidance for the year from low double digits to a range of 9% to 12% and said it now expected comparable sales growth between 4% and 6%, compared to a prior range of 6% to 7%. It also slashed its full-year EPS forecast range by nearly a dollar, from $12.83-$13.03 to $11.86-$12.06.
Should you buy in?
Fortunately for investors, the dropoff doesn't appear to have anything to do with Ulta's execution or competitive position -- those appear to be intact. Rather, the problem appears to be the overall cosmetics category, which is slowing down as a whole.
My verdict
With the 30% drop, Ulta's stock valuation has now dipped below 20 times trailing earnings -- a multi-year low. At the midpoint of the lowered guidance, Ulta is projecting EPS growth of just 8.7% for fiscal 2020.
What hurt Ulta Beauty stock?
To me, that means that much of the bad news is likely priced in at this point.
Lower outlook
Ulta Beauty (ULTA) stock fell about 22% after its lower-than-expected second-quarter results on Thursday. The company’s management lowered its fiscal 2019 sales and earnings guidance due to challenges in the US cosmetic market.
