Ulta Beauty (ULTA) closed at $360.47 in the latest trading session, down -0.6% from the previous day. The stock’s performance lagged the S&P 500’s daily gain of 0.57%. Meanwhile, the Dow was up 0.28% and the technology-focused Nasdaq was up 0.63%.

Shares of the beauty products retailer have lost 4.59% over the past month, lagging the Retail-Wholesale sector’s gain of 6.19% and the S&P 500’s gain of 3.15%.

Ulta Beauty’s upcoming earnings release will be of great interest to investors. The company’s earnings report is expected on December 5, 2024. In this report, analysts expect Ulta Beauty to report earnings of $4.45 per share. This would represent a decrease of 12.23% compared to the previous year. Meanwhile, our most recent consensus estimate is calling for revenue of $2.48 billion, down 0.28% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $23.07 per share and revenue of $11.16 billion, representing changes of -11.37% and -0.43%, respectively, from the prior year corresponds.

Any recent changes to analyst estimates for Ulta Beauty should also be noted by investors. Such recent changes usually signify the changing landscape of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term share price performance. Investors can capitalize on this by using the Zacks Rank. This model takes these estimate changes into account and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive, outside-audited track record of outperformance. The #1 ranked stocks have averaged an annual return of +25% since 1988. Over the past 30 days, our consensus EPS forecast has remained stagnant. Ulta Beauty currently has a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Ulta Beauty currently has a Forward P/E ratio of 15.72. This valuation represents a premium compared to its industry’s average Forward P/E of 13.09.

Investors should also note that ULTA currently has a PEG ratio of 2.08. 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. As of yesterday’s close, the Retail – Other industry had an average PEG ratio of 2.08.

The story continues