Projected EPS Growth looks at the estimated growth rate for one year. It takes the consensus estimate for the current fiscal year (F1) divided by the EPS for the last completed fiscal year (F0) (actual if reported, the consensus if not). A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. A D/E ratio of 1 means its debt is equivalent to its common equity. When comparing this ratio to different stocks in different industries, take note that some businesses are more capital intensive than others. A D/E ratio of 2 might be par for the course in one industry, while 0.50 would be considered normal for another.
At Stash, we don’t recommend trying to predict the market when buying investments. We believe it can be a better strategy to buy quality investments you believe in, then hang onto them. Ulta Beauty (ULTA Quick QuoteULTA – Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates — one of the most powerful forces impacting stock prices. Heading into the first quarter of 2021, a total of 43 of the hedge funds tracked by Insider Monkey were long this stock, a change of 39% from the third quarter of 2020.
It’s another great way to determine whether a company is undervalued or overvalued with the denominator being cash flow. The detailed multi-page Analyst report does an even deeper dive on the company’s vital statistics. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. Ulta Beauty issued an update on its FY 2023 earnings guidance on Tuesday, August, 29th.
While impressive, this was a significant decrease from the 25.8% comps growth reported in the prior-year quarter. Like most companies, Ulta has a robust digital platform for those who prefer shopping online. While some assistance and consultation is available there, many customers still prefer shopping for beauty products in person.
Operating margin should rise above 14% to mark a huge improvement compared to the pre-pandemic level of around 12% of sales. Inflation has accelerated since the company issued its first official 2022 outlook, and new potential headwinds also include slowing economic growth. Yet Ulta still took the opportunity to hike its sales and profit forecasts. Management highlighted its market share wins in a growing industry. «The Ulta Beauty Team delivered exceptional first-quarter results,» Kimbell said in a press release. For context, Target’s comparable figure fell to 4% from 8% in 2022.
So it’s a good idea to compare a stock’s debt to equity ratio to its industry to see how it stacks up to its peers first. The Cash/Price ratio is calculated as cash and marketable securities per share divided by the stock price. The company also got a lift from a shift in demand toward more premium makeup products. This push helped lift the operating margin to a record 19% of sales. Ulta benefited from the fact that consumers remain interested in beauty and skin care products even as they scaled back spending in other areas last year, primarily consumer discretionary purchases. The retailer is winning market share in that expanding niche, though, partly thanks to an effective merchandising strategy.
What is Ulta Beauty Inc’s stock style?
Ulta Beauty has climbed above resistance and is forming a flat base. Its relative strength line is rebounding but still below recent highs. The relative strength line, which compares a stock’s price action with that of the S&P 500, crashed in August 2020 and is recovering again.
- A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.
- Investors have good reason to expect this positive momentum to continue.
- The retailer now sees comps rising between 6% and 8% compared to the prior range of 3% to 4%.
- But with mask mandates in place across the U.S., shoppers are forgoing lipstick purchases.
- One might think the long-term share price appreciation means investors have missed the boat on the stock, or that it’s overvalued.
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The company provided EPS guidance of $25.10-$25.60 for the period, compared to the consensus estimate of $25.26. The company issued revenue guidance of $11.05 billion-$11.15 billion, compared to the consensus revenue estimate of $11.13 billion. The upgrade of Ulta to a Zacks Rank #1 positions cruise line stocks it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. This beauty products retailer is expected to earn $14.48 per share for the fiscal year ending January , which represents a year-over-year change of 210.7%.
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Ulta was founded on January 9, 1990, and is headquartered in Bolingbrook, IL. High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, trading of commodities opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.
Beyond Market Price: Uncovering Ulta Beauty Inc’s Intrinsic Value of
This ratio essentially compares the P/E to its growth rate, thus, for many, telling a more complete story than just the P/E ratio alone. The X Industry values displayed in this column are the median values for all of the stocks within their respective industry. When evaluating a stock, it can be useful to compare it to its industry as a point of reference. The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock.
When comparing offers or services, verify relevant information with the institution or provider’s site. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. Revenue has increased at an average pace of just 5% in the last three years.
ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. Consider P/E ratio, profit and loss, and news when buying stocks. Stash allows you to purchase smaller, more affordable pieces of investments (called fractional shares) rather than the whole share, which can be significantly more expensive. Recent stocks from this report have soared up to +178.7% in 3 months – this month’s picks could be even better. Ulta’s first-quarter (which ended April 30) sales rose 21% year over year to trounce Wall Street expectations yet again.
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Yet both businesses are growing, profitable, and have a long runway for store expansion ahead. These positive factors suggest they could be good buys for patient investors aiming to take advantage of the current low sentiment around their short-term prospects. This time period essentially shows you how the consensus estimate has changed from the time of their last earnings report.
A ratio of 2 means its assets are twice that of its liabilities. A ‘good’ number would usually fall within the range of 1.5 to 3. Like most ratios, this number will vary from industry to industry. Cash flow itself is an important what type of trading is most profitable item on the income statement. While the one year change shows the current conditions, the longer look-back period shows how this metric has changed over time and helps put the current reading into proper perspective.
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