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NASDAQ:ULTA
Ulta Salon Cosmetics and Fragrance Inc. (ULTA)
Financials 
Technical Analysis 
Jun 11, 2026, 12:00 amThis summary was created by AI, based on 4 opinions in the last 12 months.
Ulta Salon Cosmetics and Fragrance Inc. (symbol: ULTA-Q) is facing some concerns about its future momentum as the market anticipates potential weakness in the latter half of 2026. Despite this, the company recently reported strong same-store sales, although higher than expected costs led to a miss in earnings, resulting in a 23% drop in shares over the past month. The younger generation’s increased focus on beauty feels insulated from disruption by AI, and the stock maintains a reasonable price-to-earnings ratio. Notably, since appointing Steelman as CEO, the stock has soared 54.4%, bolstered by robust sales growth and an improved economic sentiment regarding consumer stocks as interest rates are expected to decrease. Recent results showed significant increases in net sales and gross profit margins, encouraging investors and raising the company’s full-year guidance.
They just reported an excellent quarter last night, but spiked after hours, plunged, then rebounded today. A yo-yo. Why? How? Up and down then flat. They had a massive earnings and sales beats. Same-store sales were up 15.6% vs. 8.7% expected. And they faced tough comps from last year. RPS and revenue forecast FY 2023 guidance topped expectations. They're opening 25-30 new stores, while Wall Street expected 49. Problem is that expectations were set high, and today saw the SVB crash and a bearish market. Impressive growth areas: skin care, fragrance and ecommerce/in-store pick-up. Rewards program boasts 40.2 million members. American luxury spending will remain healthy, but will moderate. Not perfect, but pretty good.
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Premium contentEstee Lauder is a consideration, but it trades at 44.9x PE and the stock locks fully valued now. In contast, Ulta looks reasonable at a 26.4x valuation. True, Ulta is also trading at current highs, but it could have a little more upside. The 14 analysts who recommend a buy and the seven who hold agree by placing a $460.37 price target on ULTA-Q. That's nearly 14% upside as the year starts. Also, Ulta boasts a strong record of four blow-out beats last year. Consumers hold a lot of cash and, after being cooped up during Covid, are dying to get out and meet people again. This is the way to play the coming party.
(A Top Pick Sep 02/20, Up 52%) People are buying makeup and perfumes again. They did well with skincare and their deal with Target during the pandemic. Beauty and cosmetics are coming back. They will perform quite well if things stay open.
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They had a great quarter and he loves the CEO. At $438, shares are in no-man's land. Sells at 17x earnings. A good buy, but not a trading stock.