Ulta Beauty (ULTA - Free Report) closed the most recent trading day at $483.52, moving -1.22% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.14%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 0.57%.
Shares of the beauty products retailer have appreciated by 6.56% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 0.45%, and the S&P 500's gain of 0.25%.
The investment community will be paying close attention to the earnings performance of Ulta Beauty in its upcoming release. On that day, Ulta Beauty is projected to report earnings of $6.16 per share, which would represent year-over-year growth of 6.57%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.97 billion, indicating a 6.4% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $28.76 per share and revenue of $13.21 billion, indicating changes of +12.17% and +6.61%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Ulta Beauty. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ulta Beauty is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Ulta Beauty is presently being traded at a Forward P/E ratio of 17.02. Its industry sports an average Forward P/E of 14.46, so one might conclude that Ulta Beauty is trading at a premium comparatively.
Investors should also note that ULTA has a PEG ratio of 1.53 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Miscellaneous was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ULTA in the coming trading sessions, be sure to utilize Zacks.com.
Investors in Ulta Beauty, Inc. (ULTA - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 18, 2026 $310 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Ulta Beauty shares, but what is the fundamental picture for the company? Currently, Ulta Beauty is a Zacks Rank #3 (Hold) in the Retail – Miscellaneous industry that ranks in the Top 22% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their earnings estimates for the current quarter, while eight analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $6.25 per share to $6.16 in that period.
Given the way analysts feel about Ulta Beauty right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Ulta Beauty (ULTA - Free Report) .
Ulta currently has an average brokerage recommendation (ABR) of 1.66, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.66 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 17 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 68% and 4% of all recommendations.
Brokerage Recommendation Trends for ULTA
Check price target & stock forecast for Ulta here>>>
The ABR suggests buying Ulta, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ULTA a Good Investment?In terms of earnings estimate revisions for Ulta, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $28.76.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Ulta. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Ulta.
California Public Employees Retirement System boosted its holdings in shares of Ulta Beauty Inc. (NASDAQ:ULTA – Free Report) by 10.3% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 91,187 shares of the specialty retailer’s stock after purchasing an additional 8,523 shares during the period. California Public Employees Retirement System owned about 0.21% of Ulta Beauty worth $47,664,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds also recently added to or reduced their stakes in the business. Kera Capital Partners Inc. lifted its holdings in shares of Ulta Beauty by 7.6% in the 1st quarter. Kera Capital Partners Inc. now owns 1,679 shares of the specialty retailer’s stock valued at $878,000 after buying an additional 119 shares during the period. Assetmark Inc. grew its holdings in Ulta Beauty by 44.9% during the first quarter. Assetmark Inc. now owns 371 shares of the specialty retailer’s stock worth $194,000 after acquiring an additional 115 shares during the period. Gallacher Capital Management LLC acquired a new stake in Ulta Beauty during the first quarter worth about $235,000. Angeles Wealth Management LLC raised its position in Ulta Beauty by 6.2% during the first quarter. Angeles Wealth Management LLC now owns 891 shares of the specialty retailer’s stock valued at $466,000 after acquiring an additional 52 shares in the last quarter. Finally, Avalon Trust Co raised its position in Ulta Beauty by 1.9% during the first quarter. Avalon Trust Co now owns 2,833 shares of the specialty retailer’s stock valued at $1,481,000 after acquiring an additional 52 shares in the last quarter. 90.39% of the stock is owned by hedge funds and other institutional investors.
Insider Activity In related news, Director George R. Mrkonic, Jr. sold 383 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $475.84, for a total value of $182,246.72. Following the completion of the transaction, the director directly owned 2,404 shares of the company’s stock, valued at $1,143,919.36. This represents a 13.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 0.20% of the company’s stock.
Ulta Beauty Trading Up 1.8% Ulta Beauty stock opened at $488.08 on Tuesday. The company has a 50-day moving average price of $477.84 and a 200 day moving average price of $562.08. Ulta Beauty Inc. has a 12-month low of $443.60 and a 12-month high of $714.97. The stock has a market cap of $20.98 billion, a P/E ratio of 18.30, a PEG ratio of 1.50 and a beta of 0.88.
Ulta Beauty (NASDAQ:ULTA – Get Free Report) last announced its quarterly earnings results on Tuesday, June 2nd. The specialty retailer reported $7.74 EPS for the quarter, beating the consensus estimate of $6.89 by $0.85. Ulta Beauty had a return on equity of 44.77% and a net margin of 9.36%.The business had revenue of $3.16 billion for the quarter, compared to analyst estimates of $3.12 billion. During the same quarter in the prior year, the company posted $6.70 EPS. The company’s quarterly revenue was up 11.1% on a year-over-year basis. Ulta Beauty has set its FY 2026 guidance at 28.360-28.800 EPS. As a group, analysts forecast that Ulta Beauty Inc. will post 28.76 EPS for the current year.
Analyst Ratings Changes ULTA has been the subject of several research analyst reports. DA Davidson reduced their target price on Ulta Beauty from $650.00 to $585.00 and set a “buy” rating for the company in a research note on Wednesday, June 3rd. Robert W. Baird dropped their price target on shares of Ulta Beauty from $730.00 to $700.00 and set an “outperform” rating on the stock in a research note on Wednesday, June 3rd. Citigroup cut their price target on shares of Ulta Beauty from $600.00 to $560.00 and set a “neutral” rating for the company in a report on Thursday, June 4th. Evercore set a $635.00 price objective on shares of Ulta Beauty in a research report on Wednesday, June 3rd. Finally, Wedbush started coverage on shares of Ulta Beauty in a report on Monday, April 20th. They set an “outperform” rating on the stock. One analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $638.09.
View Our Latest Research Report on Ulta Beauty
Ulta Beauty Company Profile (Free Report)
Ulta Beauty, Inc (NASDAQ: ULTA) is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.
The retailer’s product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.
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Ulta Beauty (ULTA +1.76%) and Sally Beauty (SBH +0.07%) have struggled with macroeconomic headwinds over the past few years. These retailers haven’t been able to find meaningful revenue traction. The one that begins to grow faster as we come out of this downturn may be the cosmetics stock offering the biggest upside over the coming years. Here’s a look at where these businesses stand in 2026 and what to expect in the near term.
Ulta Beauty: Navigating Seasonal Fluctuations in RevenueUlta Beauty is a prominent beauty retailer across the United States, offering an assortment of cosmetics, perfumes, skincare products, and comprehensive salon services.
It launched agentic shopping features using artificial intelligence in April 2026, and reported approximately 11% net income margin for the quarter ended May 2, 2026.
Sally Beauty: Maintaining Consistent Revenue LevelsSally Beauty operates as a specialized distributor of professional beauty items, providing hair coloring agents, skincare, and styling appliances to individual consumers and salon professionals.
It appointed Adrianne Lee as Chief Financial Officer in April 2026, while generating about 5% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue is the most fundamental measure of a company’s performance. Changes over time can reveal how effective a business is at reaching new customers, gaining market share in its industry, and expanding into new markets.
Quarterly Revenue for Ulta Beauty and Sally BeautyQuarter (Period End)Ulta Beauty RevenueSally Beauty RevenueQ3 2024$2.6 billion (period ended Aug. 2024)$935.0 million (period ended Sept. 2024)Q4 2024$2.5 billion (period ended Nov. 2024)$937.9 million (period ended Dec. 2024)Q1 2025$3.5 billion (period ended Jan. 2025)$883.1 million (period ended March 2025)Q2 2025$2.8 billion (period ended May 2025)$933.3 million (period ended June 2025)Q3 2025$2.8 billion (period ended Aug. 2025)$947.1 million (period ended Sept. 2025)Q4 2025$2.9 billion (period ended Nov. 2025)$943.2 million (period ended Dec. 2025)Q1 2026$3.9 billion (period ended Jan. 2026)$903.4 million (period ended March 2026)Q2 2026$3.2 billion (period ended May 2026)Not yet reportedData source: Company filings. Data as of July 16, 2026.
Foolish TakeUlta Beauty is the larger business, generating over four times as much revenue. It is also growing faster amid challenging consumer spending conditions.
Sally Beauty expects full-year comparable store sales to be flat or up 1%, while Ulta Beauty anticipates full-year comp sales to grow between 2.5% and 3.5%.
Ulta Beauty’s greater revenue size has also allowed the business to be further along in scaling expenses to turn a higher profit. Its profit margin is more than double Sally’s. Ulta’s recent margin increase last quarter reflects internal efforts to increase inventory turnover and operating efficiency.
Investors will want to watch management’s guidance for both companies to see if there are any revisions based on changing demand trends in the second half of the year. Unless Sally sees improved growth at some point, Ulta Beauty may runaway as the leader in this market. Ulta’s stock has outperformed Sally’s marginally over the last three years, and that momentum may continue unless something changes.
Ulta Beauty (ULTA - Free Report) ended the recent trading session at $478.86, demonstrating a +2.73% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.51%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 1.47%.
Shares of the beauty products retailer witnessed a gain of 3.41% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 0.51%, and the S&P 500's gain of 0.53%.
The investment community will be paying close attention to the earnings performance of Ulta Beauty in its upcoming release. The company's upcoming EPS is projected at $6.16, signifying a 6.57% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.97 billion, up 6.4% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $28.67 per share and a revenue of $13.21 billion, demonstrating changes of +11.82% and +6.61%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Ulta Beauty. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Ulta Beauty is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Ulta Beauty is presently being traded at a Forward P/E ratio of 16.26. This denotes a premium relative to the industry average Forward P/E of 14.48.
We can also see that ULTA currently has a PEG ratio of 1.46. 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. The Retail - Miscellaneous industry had an average PEG ratio of 1.82 as trading concluded yesterday.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ULTA in the coming trading sessions, be sure to utilize Zacks.com.
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Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
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The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Ulta Beauty (ULTA - Free Report) Ulta Beauty, Inc., headquartered in Bolingbrook, IL, is an international specialty beauty retailer. Founded in 1990, the company changed its name to Ulta Beauty in January 2017.
ULTA, a #3 (Hold) stock, was added to the Focus List on March 25, 2020 at $177.59 per share. Since then, shares have increased 162.48% to $466.14.
12 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.2 to $28.67. ULTA boasts an average earnings surprise of 10%.
Moreover, analysts are expecting ULTA's earnings to grow 11.8% for the current fiscal year.
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
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Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
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How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Ulta Beauty (ULTA - Free Report) Ulta Beauty, Inc., headquartered in Bolingbrook, IL, is an international specialty beauty retailer. Founded in 1990, the company changed its name to Ulta Beauty in January 2017.
ULTA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. ULTA has a Momentum Style Score of B, and shares are up 3.4% over the past four weeks.
12 analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.20 to $28.67 per share. ULTA also boasts an average earnings surprise of +10%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ULTA should be on investors' short list.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Ulta Beauty (ULTA - Free Report) Ulta Beauty, Inc., headquartered in Bolingbrook, IL, is an international specialty beauty retailer. Founded in 1990, the company changed its name to Ulta Beauty in January 2017.
ULTA is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 15.87; value investors should take notice.
For fiscal 2027, 12 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.22 to $28.67 per share. ULTA boasts an average earnings surprise of +10%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ULTA should be on investors' short list.
The beauty and cosmetics industry remains one of the more durable consumer categories, supported by its close connection to daily habits, confidence and self-expression. Even when consumers become selective with spending, beauty products often retain a steady place in household budgets. This gives the industry a defensive quality, while innovation across skincare, fragrance, makeup and wellness keeps the growth runway attractive.
A major shift in the category is the rise of the informed beauty shopper. Consumers are comparing ingredients, reading reviews, following creators and looking for products that deliver visible benefits. This has made brand trust, product claims and digital engagement more important than ever. At the same time, premium beauty continues to gain traction as shoppers show willingness to spend more on quality, performance and aspirational brands.
The industry is also benefiting from faster product cycles and broader channel reach. Social media can turn niche products into global trends almost overnight, while e-commerce and omnichannel platforms are helping brands reach consumers more directly. Sustainability, personalization and science-backed innovation are also shaping purchase decisions, forcing companies to stay agile and relevant.
Within this landscape, Coty Inc. (COTY - Free Report) remains well-placed through its presence in prestige fragrances, cosmetics and consumer beauty, areas that continue to benefit from brand strength and premiumization. Nu Skin Enterprises, Inc. (NUS - Free Report) , meanwhile, connects to the beauty-and-wellness theme through its focus on personal care, anti-aging products and digital-led customer engagement.
For investors, the beauty and cosmetics space offers a mix of resilience and long-term growth potential. Demand is supported by recurring usage, emotional connection and constant product refreshes. Companies that can combine strong brands, innovation discipline and effective digital execution should remain better positioned to capture value as the industry continues to evolve.
Investors seeking exposure to this theme can consider companies from our Beauty & Cosmetics Screen, including The Estee Lauder Companies Inc. (EL - Free Report) , Ulta Beauty, Inc. (ULTA - Free Report) and e.l.f. Beauty, Inc. (ELF - Free Report) .
Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.
3 Beauty and Cosmetic Stocks in FocusThe Estee Lauder Companies remains one of the world's leading prestige beauty companies, with a diversified portfolio spanning skincare, makeup, fragrance and hair care. As the beauty industry continues to evolve, the company is adapting by expanding consumer reach, accelerating product innovation and strengthening its presence across digital and specialty retail channels. These initiatives position Estee Lauder to capitalize on changing consumer preferences while reinforcing its leadership in the global prestige beauty market.
Innovation remains central to the company's strategy. Recent launches include Estee Lauder Double Wear Matte Foundation, La Mer's eye care innovations, M·A·C Lip and Cheek Mousse and new fragrances from TOM FORD, Le Labo, KILIAN PARIS and BALMAIN Beauty. Alongside product development, the company continues to expand distribution through platforms such as Amazon Premium Beauty, TikTok Shop, Douyin, vip.com and Sephora, broadening consumer access across key digital and specialty retail channels.
Beyond innovation, EL is enhancing its operating and digital capabilities through partnerships with Shopify, Accenture and WPP to improve consumer insights, media effectiveness and omnichannel execution. The Zacks Rank #2 (Buy) company has also expanded its brand portfolio by acquiring Forest Essentials, a leading prestige Ayurvedic beauty brand in India, and making a minority investment in 111Skin, a luxury skincare brand focused on pre- and post-procedure skincare. These initiatives underscore Estee Lauder's continued focus on strengthening its position across high-growth segments of the global beauty market. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ulta Beauty has established itself as a leading beauty retailer by offering a broad assortment of prestige and mass beauty brands through an integrated omnichannel platform. As consumer preferences increasingly favor convenience, personalization and product discovery, the company continues to strengthen its position by expanding brand offerings, enhancing digital capabilities and creating engaging shopping experiences across online and physical channels. Its strategy reflects the changing dynamics of the beauty and cosmetics industry, where innovation and customer engagement remain key competitive differentiators.
Brand expansion and innovation remain central to Ulta Beauty's strategy. The Zacks Rank #3 (Hold) company continues to introduce new and exclusive brands while broadening its assortment across beauty categories. Recent additions include Rare Beauty, Balmain Beauty, Bloomeffects, Hairstory and Grüns, alongside continued investment in exclusive brands such as NOYZ. ULTA has also expanded its digital reach through TikTok Shop, complemented by thousands of in-store beauty events and a loyalty program designed to deliver more personalized experiences and deepen customer engagement.
Beyond its core retail business, Ulta Beauty is investing in initiatives that support long-term growth. The company continues to expand its marketplace assortment, grow its wellness offerings and strengthen its international presence through Space NK and franchise partnerships. It is also enhancing UB Media, leveraging artificial intelligence to improve customer experiences and investing in supply-chain automation to support faster and more efficient operations. Together, these initiatives reinforce ULTA’s focus on innovation while strengthening its position in the evolving beauty and cosmetics industry.
e.l.f. Beauty has expanded beyond its roots in affordable cosmetics to build a diversified beauty platform spanning color cosmetics, skincare and clean beauty. Its portfolio now includes e.l.f. Cosmetics, e.l.f. SKIN, Naturium, rhode and Well People, enabling the company to serve a broader range of beauty consumers while strengthening its presence across multiple product categories. This portfolio approach positions e.l.f. Beauty to capitalize on evolving consumer preferences while broadening its long-term growth opportunities.
Product innovation and digital engagement remain central to the company's strategy. The Zacks Rank #3 company combines community-led product development with social-first marketing to accelerate product discovery and brand awareness. Products such as Halo Glow and Power Grip Primer, together with brands, including Naturium and rhode, demonstrate the company's expanding presence across cosmetics and skincare. ELF also continues to leverage digital commerce, TikTok and strategic retail partnerships to deepen consumer engagement and extend its market reach.
Beyond innovation, e.l.f. Beauty continues to broaden its global footprint through international retail expansion and investments in technology. The company is entering additional markets, expanding relationships with retail partners and enhancing its digital capabilities to support brand growth across geographies. ELF is also investing in artificial intelligence and technology to strengthen marketing, consumer engagement and operational execution, reinforcing its position as an innovative participant in the global beauty and cosmetics industry.
Ulta Beauty remains a buy as risk/reward improves amid investor concerns about beauty demand and margin durability. ULTA's core business is robust, with 5.3% Q1 comp sales growth and broad-based category strength supported by a 46.9M-member loyalty program. Gross margin expanded to 40.1% on better inventory control and merchandise margin, though SG&A investments temporarily pressure operating leverage.
Key Takeaways Ulta Beauty views international expansion as a key driver of future accretive growth.ULTA's Space NK continues to grow while expanding its customer base and market share.ULTA added stores in Mexico and the Middle East to strengthen its international footprint. Ulta Beauty, Inc. (ULTA - Free Report) expects to generate incremental accretive growth as it continues to scale its newer businesses, including its international expansion initiatives. These investments will play an important role in the company’s long-term growth strategy while supporting the continued expansion of its global business. Ulta Beauty further strengthened its international footprint by opening new stores across multiple overseas markets, reinforcing its commitment to expanding beyond the United States.
The company highlighted the continued strength of Space NK, its U.K. and Ireland business, which continues to deliver healthy and well-balanced growth. Space NK is expanding its loyal customer base while steadily gaining market share. Ulta Beauty believes this consistent performance reinforces the strength of its international operations and provides a solid foundation for broader global expansion over the long term.
Ulta Beauty also expanded its presence in Mexico by opening two new stores, including the Madero location, a distinctive two-story location that blends modern beauty retail with the historic architecture and character of central Mexico City. In addition, franchise partner Alshaya Group opened the company’s third Middle East location at Dubai Mall, further extending Ulta Beauty’s presence across international markets through continued store expansion. While the company acknowledged that conditions in the Middle East remain fluid, it remains optimistic about the long-term potential of its flagship location and broader opportunities in the region.
Overall, Ulta Beauty continues to pursue a disciplined long-term international expansion strategy as it invests in newer growth businesses. As the company continues to expand its international operations through Space NK, Mexico and the Middle East, management expects these newer businesses to contribute incremental accretive growth over time while supporting its long-term growth strategy.
The Zacks Rundown for ULTAThe company’s shares have lost 4.6% in the past year compared with the industry’s 13.8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 15.06, higher than the industry’s average of 14.41. ULTA currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings implies a year-over-year rise of 11.8% and 11.3%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 14.7% and 34.3%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Estée Lauder Companies Inc. (EL - Free Report) manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. At present, EL flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for EL’s current fiscal-year sales and earnings indicates growth of 4.5% and 59.6%, respectively, from the year-ago figures. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Interparfums, Inc. (IPAR - Free Report) manufactures, markets, and distributes a range of fragrances and fragrance-related products in the United States and internationally. At present, the company carries a Zacks Rank of 2 (Buy).
The consensus estimate for Interparfums’ current fiscal-year sales and earnings implies a decline of 0.1% and 8%, respectively, from the year-ago figures. IPAR delivered a trailing four-quarter earnings surprise of 8%, on average.
In the latest trading session, Ulta Beauty (ULTA - Free Report) closed at $452.49, marking a -1.92% move from the previous day. This change lagged the S&P 500's 0.72% gain on the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.12%.
Shares of the beauty products retailer witnessed a loss of 1.23% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 0.64%, and the S&P 500's loss of 0.9%.
The investment community will be closely monitoring the performance of Ulta Beauty in its forthcoming earnings report. The company is expected to report EPS of $6.16, up 6.57% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.97 billion, indicating a 6.4% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $28.67 per share and a revenue of $13.21 billion, indicating changes of +11.82% and +6.61%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Ulta Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 shifted 0.19% upward. Ulta Beauty is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ulta Beauty has a Forward P/E ratio of 16.09 right now. This signifies a premium in comparison to the average Forward P/E of 15.56 for its industry.
It's also important to note that ULTA currently trades at a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Miscellaneous was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.
Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.
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Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Ulta Beauty (ULTA - Free Report) Ulta Beauty, Inc., headquartered in Bolingbrook, IL, is an international specialty beauty retailer. Founded in 1990, the company changed its name to Ulta Beauty in January 2017.
Since being added to the Focus List on March 25, 2020 at $177.59 per share, shares of ULTA have increased 159.77% to $461.33. The stock is currently a #3 (Hold) on the Zacks Rank.
12 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.23 to $28.67. ULTA boasts an average earnings surprise of 10%.
Moreover, analysts are expecting ULTA's earnings to grow 11.8% for the current fiscal year.
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A month has gone by since the last earnings report for Ulta Beauty (ULTA - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ulta due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Ulta Beauty Lifts FY26 View as Q1 Earnings Beat, Comps Rise 5.3%Ulta Beauty reported first-quarter fiscal 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company delivered double-digit sales and earnings growth, driven by broad-based strength across channels and product categories, along with contributions from the Space NK acquisition.
The beauty retailer reported first-quarter fiscal 2026 earnings per share of $7.74, beating the Zacks Consensus Estimate of $6.90. The bottom line increased 15.5% from the year-ago quarter’s reported figure of $6.70.
Net sales rose 11.1% year over year to $3,163.9 million and surpassed the Zacks Consensus Estimate of $3,113 million. Growth was primarily driven by higher comparable sales, contributions from the Space NK acquisition and sales from new stores. Comparable sales increased 5.3%, supported by a 3.7% rise in average ticket and a 1.6% jump in transactions.
ULTA’s Quarterly Results: Key Metrics & InsightsUlta Beauty’s gross profit increased 13.8% year over year to $1,267.6 million. Gross margin expanded 100 basis points to 40.1% from 39.1%, primarily due to lower inventory shrink and higher merchandise margin. Improvements in inventory productivity and favorable category mix also aided profitability.
Selling, general and administrative (SG&A) expenses increased 14.6% to $814.7 million from $710.6 million reported in the prior-year quarter. As a percentage of net sales, SG&A expenses rose to 25.8% from 24.9%. The increase was primarily due to the acquisition of Space NK, strategic enterprise investments and higher store-related expenses, partially offset by leverage in advertising expenses.
Operating income surged 11.6% to $448.3 million from $401.8 million in the year-ago quarter. As a percentage of net sales, operating income improved slightly to 14.2% from 14.1% in the prior-year period.
ULTA’s Category Performance Remains Broad-BasedPerformance was broad-based across all major categories in the quarter. Fragrance remained the strongest category, delivering high-teens comparable sales growth, driven by newness from luxury brands such as YSL, Carolina Herrera, Valentino and Balmain, as well as innovation from exclusive fragrance brand NOYZ.
Haircare generated high-single-digit comparable growth, supported by strength in prestige haircare, new and exclusive brands, and healthy demand for hair-treatment products.
Makeup posted low-single-digit comparable sales growth, aided by prestige makeup performance and the successful launch of Rare Beauty. Skincare and wellness delivered low-single-digit comparable growth, benefiting from prestige skincare, mass skincare and continued momentum in supplements and self-care products. Services revenues increased in the mid-single-digit range, supported by strong member engagement.
Ulta Beauty’s Strategic Initiatives Gain TractionUlta Beauty continued to advance its “Ulta Beauty Unleashed” strategy during the quarter. The company launched TikTok Shop, positioning itself as a key beauty discovery platform and strengthening engagement with younger consumers. Ulta Beauty also added more than 20 new brands during the quarter, expanded its marketplace assortment to more than 325 brands and 8,000 SKUs and grew its loyalty program to approximately 46.9 million members, up 4% year over year.
The company continued expanding its international presence through Space NK, Mexico and the Middle East. Management also announced plans for a highly experiential flagship location in Times Square, NY, which is expected to open in late 2027.
ULTA’s Financial Health Snapshot & Store UpdateThe company ended the quarter with cash and cash equivalents of $166.3 million and short-term investments of $55 million. Merchandise inventories increased 12.5% year over year to $2.4 billion. Short-term debt totaled $144.9 million, while stockholders’ equity stood at $2.58 billion at quarter-end.
Net cash provided by operating activities was $261.9 million in the first quarter. Capital expenditures totaled $58.3 million, primarily related to investments in new and existing stores.
During the quarter, Ulta Beauty repurchased 958,323 shares of its common stock for $555 million. As of May 2, 2026, approximately $1.3 billion was available under the company’s $3 billion share buyback authorization announced in October 2024.
Ulta Beauty opened 16 net new stores in the United States and one net new Space NK store during the quarter. The company ended the period with 1,521 Ulta Beauty stores and 87 Space NK stores.
What to Expect From ULTA in FY26?Following its better-than-expected first-quarter performance, Ulta Beauty updated its fiscal 2026 outlook.
The company continues to expect net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5%. Management now anticipates operating income growth of 6.5% to 9% compared with its previous expectation of 6% to 9%.
Ulta Beauty raised its fiscal 2026 earnings per share guidance to the range of $28.36-$28.80 from the prior range of $28.05-$28.55.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.
VGM ScoresAt this time, Ulta has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Ulta has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerUlta is part of the Zacks Retail - Miscellaneous industry. Over the past month, Bath & Body Works (BBWI - Free Report) , a stock from the same industry, has gained 24.1%. The company reported its results for the quarter ended April 2026 more than a month ago.
Bath & Body Works reported revenues of $1.38 billion in the last reported quarter, representing a year-over-year change of -3.2%. EPS of $0.32 for the same period compares with $0.49 a year ago.
For the current quarter, Bath & Body Works is expected to post earnings of $0.23 per share, indicating a change of -37.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bath & Body Works. Also, the stock has a VGM Score of A.
Key Takeaways Ulta Beauty grew its Rewards program to nearly 47 million members, up 4% year over year.ULTA launched Ulta AI to improve product discovery, personalization and the shopping experience.ULTA uses loyalty data to tailor offers, anticipate replenishment and improve cart conversion. Ulta Beauty, Inc. (ULTA - Free Report) continued to strengthen its personalization strategy through its Ulta Beauty Rewards loyalty program, which expanded to nearly 47 million members, representing 4% year-over-year growth in the first quarter of fiscal 2026. By leveraging customer data and insights, the company aims to deliver a more personalized shopping experience, improve customer engagement and strengthen loyalty through more relevant interactions across its retail and digital channels.
To further deepen customer engagement, the company continues to expand the use of artificial intelligence across its customer experience initiatives. During the quarter, it introduced Ulta AI, an online shopping agent designed to enhance product discovery, personalization and the overall shopping journey. Management indicated that initial customer response has been encouraging, reflecting the potential of the new feature to improve engagement. By integrating AI into the shopping experience, the company aims to deliver more personalized interactions while strengthening its digital capabilities and enhancing the overall customer experience.
The company is using loyalty data to better understand customer behavior, anticipate replenishment purchases and improve cart conversion, further enhancing the effectiveness of its personalized customer engagement strategy. By combining artificial intelligence with its rich first-party data from loyalty members, the company aims to tailor communications and promotional offers based on individual customer preferences.
This personalized approach enables the company to deliver different types of incentives, such as gifts with purchase, value-focused offers, percentage discounts or price-point promotions, to better match each customer's needs and shopping behavior.
Ulta Beauty is evolving its customer relationships from transactional interactions to individualized experiences. As these capabilities improve, Ulta Beauty aims to make shopping more personalized and strengthen customer engagement.
The Zacks Rundown for ULTAThe company’s shares have lost 3% in the past year compared with the industry’s 7.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 10.43, lower than the industry’s average of 14.74. ULTA currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings implies a year-over-year rise of 11.8% and 11.3%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 14.7% and 34.3%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Estée Lauder Companies Inc. (EL - Free Report) manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. At present, EL flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for EL’s current fiscal-year sales and earnings indicates growth of 4.5% and 59.6%, respectively, from the year-ago figures. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Interparfums, Inc. (IPAR - Free Report) manufactures, markets, and distributes a range of fragrances and fragrance-related products in the United States and internationally. At present, the company carries a Zacks Rank of 2 (Buy).
The consensus estimate for Interparfums’ current fiscal-year sales and earnings implies a decline of 0.1% and 8%, respectively, from the year-ago figures. IPAR delivered a trailing four-quarter earnings surprise of 8%, on average.
Kelly Mahoney became CMO at Ulta Beauty 18 months ago. She spoke to CMO Insider at Cannes Lions 2026 about how the brand is driving greater personalization through its loyalty program.
"Over 95% of all of our sales are coming from our members," she said. "The trick is how do we leverage that information to power the experiences that become very meaningful to our customers, in a way that resonates with their lives."
Kelly Mahoney became CMO at Ulta Beauty 18 months ago. She spoke to CMO Insider at Cannes Lions 2026 about how the brand is driving greater personalization through its loyalty program.
"Over 95% of all of our sales are coming from our members," she said. "The trick is how do we leverage that information to power the experiences that become very meaningful to our customers, in a way that resonates with their lives."
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ULTA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
On June 24, 2026, Ulta Beauty Inc (ULTA) shares rose 4.3% to $478.93. The stock is currently trading within a 52-week range of $448.57 to $714.97, reflecting a
Key Takeaways Ulta Beauty cites inflation, fuel costs and competition as key headwinds for fiscal 2026.ULTA delivered 11.1% sales growth and 5.3% comparable sales growth in the first quarter.ULTA expands loyalty, AI capabilities and international stores to deepen customer engagement. Ulta Beauty, Inc.’s (ULTA - Free Report) shares have plunged 24.5% in the past six months, underperforming the Zacks industry’s decline of 18.1%. The stock has also underperformed the broader sector’s 3.3% decline and the S&P 500 Index’s 7.7% increase in the same period.
Image Source: Zacks Investment Research
During the same period, Ulta Beauty has trailed the performance of Sally Beauty Holdings, Inc. (SBH - Free Report) , The Estee Lauder Companies Inc. (EL - Free Report) and Interparfums, Inc. (IPAR - Free Report) . Shares of EL and SBH have plunged 22% and 12.1%, respectively, in the past six months, while shares of IPAR have risen 16.6%.
Image Source: Zacks Investment Research
ULTA Stock Falls on Macro Threats & Moderating GrowthUlta Beauty faces several near-term headwinds stemming from a challenging macroeconomic environment, rising competitive intensity and increasingly difficult year-over-year comparisons. At its first-quarter fiscal 2026 earnings call, management noted that the operating environment remains pressured by economic uncertainty, persistent inflation and higher fuel prices. These factors are making value a more important consideration for consumers when making purchasing decisions. At the same time, elevated fuel costs have pushed transportation expenses higher, highlighting the impact of broader economic conditions on the business.
SG&A expenses rose 14.6% year over year to $815 million in the first quarter, adding further strain to the company’s cost structure. The increase was largely due to the ongoing investments supporting the Ulta Beauty Unleashed strategy and spending initiatives implemented during the second half of fiscal 2025 that have not yet completed one year. As a result, the company continues to face elevated operating costs and challenging expense comparisons.
In addition, Ulta Beauty operates in a highly competitive market where rivals are expected to intensify efforts to capture market share. This dynamic is likely to increase execution pressure and require the company to perform at a higher level to protect its competitive position and sustain performance throughout the remainder of the year.
Per the last earnings call, management expects growth trends to moderate in the back half of the year as the company laps a period of stronger prior-year performance. This tougher comparison base is likely to create a more challenging growth environment and could slow the pace of expansion relative to earlier periods.
ULTA Drives Growth Through Loyalty, AI and Global ExpansionDespite these near-term challenges, Ulta Beauty continues to benefit from several long-term growth drivers that support customer engagement, market share gains and profitable growth. The company’s growth is supported by its differentiated beauty ecosystem, which combines a broad mass-to-luxury assortment, omnichannel convenience, strong brand partnerships and a large loyalty base. These strengths help the company attract a wide range of beauty consumers, support market share gains in prestige beauty and reinforce its position in mass beauty.
A major driver is the Ulta Beauty Rewards program, which has expanded to nearly 47 million members. This large first-party database enables more personalized marketing, better product recommendations and improved customer engagement across stores, digital channels and the app. As personalization becomes more important in beauty retail, Ulta Beauty’s loyalty platform remains a key competitive advantage.
Ulta Beauty is also strengthening growth through digital and social commerce. Investments in e-commerce, same-day delivery, buy-online-pickup-in-store and emerging platforms such as TikTok Shop allow the company to meet customers where they discover and purchase beauty products. Events like Ulta Beauty World further support brand awareness, social engagement and customer acquisition, particularly among younger consumers.
International expansion provides another long-term growth avenue. Space NK continues to build momentum in the U.K. and Ireland, while Ulta Beauty is expanding in Mexico and the Middle East through new stores and partnerships. These markets offer opportunities to extend brand reach and diversify growth beyond the United States.
Artificial intelligence is also becoming an important enabler. Ulta AI is designed to improve discovery, personalization and the online shopping journey, while broader AI and automation initiatives can enhance operational efficiency over time.
How Have Estimates Shaped Up for ULTA?The Zacks Consensus Estimate for ULTA’s current quarter earnings per share has remained unchanged at $6.16, and the current year earnings per share have improved by 1 cent to $28.67 per share in the past seven days. This reflects steady analyst confidence in Ulta Beauty's earnings outlook.
Image Source: Zacks Investment Research
Ulta Beauty’s Valuation PictureUlta Beauty is currently trading at a forward 12-month P/E multiple of 15.31, slightly above the industry average of 14.71 but well below the S&P 500 multiple of 21.32. The stock is also trading below its 12-month median P/E of 20.25.
ULTA’s current valuation suggests investors remain cautious about near-term growth prospects, while still assigning the stock a modest premium for its market position and long-term growth potential.
Image Source: Zacks Investment Research
How to Play ULTA Stock?Ulta Beauty is navigating a period of heightened macroeconomic uncertainty and competitive pressure, which may temper near-term performance. However, the company continues to benefit from a differentiated business model built around a strong loyalty ecosystem, omnichannel capabilities, exclusive brand partnerships and expanding digital engagement. Ongoing investments in personalization, artificial intelligence and international expansion provide additional avenues for long-term growth. Given the balance between near-term headwinds and long-term growth opportunities, investors may prefer to remain on the sidelines until there is greater visibility into the pace of growth and margin trends.
At present, ULTA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BOLINGBROOK, Ill.--(BUSINESS WIRE)--Ulta Beauty, Inc. (NASDAQ: ULTA) today unveiled findings from a new Ulta Beauty-commissioned study conducted by NielsenIQ, “Smart Beauty: AI, Personalization & the Gen Alpha Consumer,” exploring how Gen Alpha consumers are navigating beauty and wellness in an increasingly AI-driven world. The study underscores Ulta Beauty’s commitment to understanding and evolving alongside the next generation, as well as building beauty and wellness experiences that are personalized, empowering, responsible and rooted in trust.
Smart Beauty Study: Gen Alpha Values Both AI & In-Person Experiences
The Smart Beauty study reveals a generation embracing technology while still valuing in-person experiences and trusted guidance – challenging assumptions about what it means to be digital and AI natives.
“Our Smart Beauty research shows that Gen Alpha is embracing AI and personalization in ways that are fundamentally changing how beauty and wellness is discovered and shopped, while still valuing the importance of physical stores and real-world experiences,” said Kelly Mahoney, chief marketing officer at Ulta Beauty. “What’s especially powerful is that technology is fueling more exploration and engagement with the category, making discovery faster, more relevant and more inspiring for Gen Alpha consumers.”
Among the findings:
Gen Alpha Blends Digital Discovery With Real-World Validation: While 78% of Gen Alpha consumers discover beauty products through at least one online source, nearly as many (77%) then seek real-world validation, including visiting stores to try products in person (37%), asking family or friends how to use products (37%) and discussing products with peers (36%). “In Real Life” (IRL) Shopping Wins on Instant Gratification: Despite being digital natives, the majority of Gen Alpha consumers still prefer shopping for beauty products in-store, including 73% of fragrance users, 70% of makeup users, 66% of skincare users, 66% of hair care users and 66% of nail care users. The top reasons: being able to take products home immediately (43-51% across categories) and discovering or exploring new products in person (33-49% across categories). AI Is Reinforcing the In-Store Beauty Experience: Gen Alpha consumers who use AI tools are significantly more likely to visit stores to browse and try products in person than non-AI users (57% vs. 36%), revealing that technology is amplifying discovery rather than replacing physical retail. Personalization Is Becoming Part of Everyday Beauty Discovery: Nearly three-quarters (73%) of Gen Alpha beauty consumers already use personalization tools while shopping for beauty products, turning to tailored product recommendations (35%), AI-powered search results (31%) and interest-based content suggestions (29%). The top reasons for using these tools include discovering new products (53%), trying something new (45% overall; 54% among teen girls) and learning how to use products (42% overall; 49% among nail care users). Teen Boys Are Emerging as Early AI Beauty Adopters: Teen boys are leading Gen Alpha’s adoption of AI-powered beauty tools, with 26% using AI shopping assistants – nearly double the rate of other Gen Alpha groups (~15%). Compared to pre-teen boys, they are also more likely to be aware of (84% vs. 72%) and use (79% vs. 65%) personalization tools, underscoring their comfort with customized beauty experiences. AI Beauty Users Feel More Confident in Their Product Choices: Compared to non-users, Gen Alpha consumers who use AI shopping assistants are significantly more likely to say personalization makes beauty feel more relevant (44% vs. 24%), more fun and engaging (42% vs. 27%) and more efficient by helping save time while shopping and exploring products (42% vs. 29%). They are also more likely to trust recommendations when they understand why products are being suggested (38% vs. 23%). Parents Want More Guidance & Transparency in Beauty: Gen Alpha parents remain highly involved in beauty purchasing decisions, with 98% saying they play an active role in what beauty and personal care products are purchased. They are also the single most helpful beauty influence for Gen Alpha (41%), outranking social media (34%) and friends (29%). For retailers, trust starts with safety and guidance: one-third of parents and guardians (33%) say the most important way to build trust is by creating safe, welcoming environments for Gen Alpha, including age-appropriate assortments, clear ingredient labeling and knowledgeable in-store associate guidance. “What stands out in these findings is the clear convergence of digital and physical behaviors,” said Jacqueline Flam, managing director, beauty & health at NIQ. “Gen Alpha is highly fluent in AI and personalization, but they are using these tools to enhance discovery and build confidence, not to replace in-store experiences. For brands and retailers, this means creating connected journeys that link digital influence with real-world engagement.”
As Gen Alpha continues to influence the future of consumer culture, Ulta Beauty believes the opportunity for the beauty and wellness industry is not simply to innovate faster, but to innovate more responsibly – combining AI-powered innovation and personalization with safety, inclusivity, education and human connection. From AI partnerships with Adobe and Google to its collaboration with NIQ to deepen understanding of beauty shoppers and market trends, Ulta Beauty is investing in thoughtful innovation grounded in insight. The company is also expanding education-first experiences – from in-store associate training to birthday programs for younger guests and their families – to advance the beauty and wellness experience for guests of all ages and life stages.
For more information and insights from the “Smart Beauty: AI, Personalization & the Gen Alpha Consumer” study, visit https://www.ulta.com/smartbeauty.
About the “Smart Beauty” Study
This research was conducted from April through May 2026 by NIQ on behalf of Ulta Beauty. The study explored how Gen Alpha consumers are engaging with beauty and wellness in an increasingly digital and AI-driven world, including their shopping behaviors, attitudes toward personalization and technology and expectations for brands and retailers. The survey is based on a nationally representative sample of 522 Gen Alpha consumers across the United States, along with 500 Gen Alpha parents and guardians.
About Ulta Beauty
Ulta Beauty (NASDAQ: ULTA) is the largest specialty beauty retailer in the U.S. and a leading destination for cosmetics, fragrance, skin care, hair care, wellness and salon services. Since opening its first store in 1990, Ulta Beauty has grown to more than 1,500 stores across the U.S. and redefined beauty retail by bringing together All Things Beauty. All in One Place®. With an expansive product assortment, professional salon services and its beloved Ulta Beauty Rewards loyalty program, the company delivers seamless, personalized experiences across stores, Ulta.com and the Ulta Beauty App – where the possibilities are truly beautiful. Ulta Beauty is also expanding its presence internationally through its subsidiary, Space NK, a luxury beauty retailer operating in the U.K. and Ireland, its joint venture in Mexico and its franchise in the Middle East. For more information, visit www.ulta.com.
About NIQ
NielsenIQ (NYSE: NIQ) is a leading consumer intelligence company, delivering the most complete and trusted understanding of consumer buying behavior and revealing new pathways to growth. By combining an unmatched global data footprint and granular consumer and retail measurement with decades of AI modeling expertise, NIQ builds decision systems that help companies turn complex data into confident action.
With operations in more than 90 countries, NIQ covers approximately 82% of the world’s population and more than $7.4 trillion in global consumer spend. Through cloud-based platforms, advanced analytics and AI-driven insights, NIQ delivers The Full View™—helping brands and retailers understand what consumers buy, why they buy it, and what to do next.
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Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
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Stock to Watch: Ulta Beauty (ULTA - Free Report) Ulta Beauty, Inc., headquartered in Bolingbrook, IL, is an international specialty beauty retailer. Founded in 1990, the company changed its name to Ulta Beauty in January 2017.
ULTA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 15.73; value investors should take notice.
12 analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.27 to $28.67 per share. ULTA also boasts an average earnings surprise of +10%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ULTA should be on investors' short list.
For the quarter ended April 2026, Ulta Beauty (ULTA - Free Report) reported revenue of $3.16 billion, up 11.1% over the same period last year. EPS came in at $7.74, compared to $6.70 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.11 billion, representing a surprise of +1.64%. The company delivered an EPS surprise of +12.2%, with the consensus EPS estimate being $6.90.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Ulta performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable sales - YoY change: 5.3% versus the eight-analyst average estimate of 4.3%.Total stores open at end of the quarter: 1,521 compared to the 1,517 average estimate based on six analysts.Number of stores opened during the quarter: 18 versus the five-analyst average estimate of 13.Net Sales by Primary Category - Other: 2% versus the two-analyst average estimate of 2%.Net Sales by Primary Category - Fragrance: 12% versus the two-analyst average estimate of 11%.Net Sales by Primary Category - Haircare: 18% versus the two-analyst average estimate of 18%.Net Sales by Primary Category - Cosmetics: 40% versus the two-analyst average estimate of 39.2%.Net Sales by Primary Category - Services: 4% compared to the 3.8% average estimate based on two analysts.View all Key Company Metrics for Ulta here>>>
Shares of Ulta have returned -3.3% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
(We are reissuing this article to correct a mistake. The original article, issued on June 2, 2026, should no longer be relied upon.)
Key Takeaways Ulta Beauty invests in fragrance newness, inventory and shopping experiences to drive growth.ULTA benefits from strong demand for luxury brands and the early success of Balmain launches.ULTA's NOYZ brand gains momentum through innovation, marketing and social engagement initiatives. Ulta Beauty, Inc. (ULTA - Free Report) continues to make progress toward its ambition of becoming the leading destination for fragrance. To support this objective, it is investing in product newness, enhancing the in-store shopping experience, improving core inventory availability and capitalizing on key seasonal events such as Valentine’s Day and Mother’s Day.
These initiatives supported fragrance category momentum and contributed to the company's broader sales growth. Management emphasized a proactive approach to strengthening the fragrance category through targeted investments and disciplined execution across multiple customer touchpoints.
Fragrance category delivered high-teen comp growth and increased from 11% to 12% of total revenues in the first quarter of fiscal 2026. Performance was primarily driven by newness from core luxury brands and product innovation. Strong contributions came from core luxury brands, including YSL, Carolina Herrera, and Valentino, while the newly introduced brand Balmain delivered an encouraging early performance. Innovation also supported growth, particularly through the introduction of the new milk scent format from exclusive brand NOYZ. Together, these new product launches and brand additions helped drive customer interest and category momentum during the quarter.
NOYZ continued to gain momentum during the quarter through product innovation and targeted marketing initiatives. The vegan and cruelty-free fragrance brand launched Mylk de Parfum, a product that combines fragrance and hydrating skincare. Management said that the format is ideal for layering, helps create a new subcategory and has generated strong guest interest while contributing to the brand's continued growth. A 360-degree go-to-market activation strategy helped elevate NOYZ into the company’s top 20 fragrance brands for the quarter.
The brand also maintained strong social engagement through the launch of Be Her, a fragrance collaboration with Ella Langley, while broader product newness continued to drive consumer excitement across categories. Overall, Ulta Beauty continues to emphasize innovation, exclusive brands and fragrance newness as it works to build momentum within the category.
The Zacks Rundown for ULTAThe company’s shares have lost 3.8% in the past year compared with the industry’s 7.1% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 15.23, higher than the industry’s average of 14.39. ULTA currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings implies a year-over-year rise of 11.8% and 11.3%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 14.7% and 31.8%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Estée Lauder Companies Inc. (EL - Free Report) manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. At present, EL carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for EL’s current fiscal-year sales and earnings indicates growth of 4.5% and 59.6%, respectively, from the year-ago figures. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Interparfums, Inc. (IPAR - Free Report) manufactures, markets, and distributes a range of fragrances and fragrance-related products in the United States and internationally. At present, the company holds a Zacks Rank of 2.
The consensus estimate for Interparfums’ current fiscal-year sales and earnings implies a decline of 0.1% and 8%, respectively, from the year-ago figures. IPAR delivered a trailing four-quarter earnings surprise of 8%, on average.
Warpaint London PLC (AIM:W7L), the maker of affordable colour cosmetics, said trading improved in the second quarter and unveiled a new US partnership with Ulta Beauty as it stuck to full-year forecasts.
Sales between 1 April and 31 May ran ahead of the same period last year, a marked shift after difficult conditions that persisted through 2025 and into the first quarter of 2026.
The cosmetics group added that overall sales were being achieved at a better margin than in 2025, with further improvement expected.
In a statement to be delivered at its annual meeting on Tuesday, chairman Clive Garston said expectations for the full year remained unchanged despite continuing macroeconomic headwinds.
The company will launch an online Christmas gift range with Ulta Beauty, the largest specialty beauty retailer in the United States, a tie-up it said could open further opportunities in 2027.
That adds to a significantly improved Christmas order already secured from Walmart for the US market.
In Germany, Warpaint launched a capsule range of its W7 products into 2,200 Dirk Rossmann stores in May, with early sales described as encouraging.
The group expects sales in 2026 to be more weighted towards the second half than in previous years, reflecting the timing of larger orders and planned customer rollouts.
Warpaint reported a strong balance sheet with no debt, and cash balances of £20.6 million at 31 May, up from £15.0 million a year earlier.
The company also disclosed a board change, with director Paul Hagon stepping down as it holds advanced talks over an expanded consultancy contract with Ward & Hagon Management Consulting aimed at accelerating growth.
Key Takeaways Ulta Beauty grows social commerce through TikTok Shop and a livestream with 5 million impressions.ULTA expands AI capabilities, delivery options and Marketplace offerings to enhance engagement.ULTA broadens growth through wellness brands and international expansion across key markets. Ulta Beauty, Inc. (ULTA - Free Report) is moving beyond traditional retail by integrating social commerce and advanced digital tools into its guest ecosystem. The launch of the TikTok Shop was strategically centered on its Only at Ulta exclusive brands. To support the initiative, the company hosted its first TikTok shoppable livestream during the Ulta Beauty World event, generating more than 5 million impressions and expanding customer engagement through social commerce. To enhance convenience, the company expanded same-day delivery through Uber Eats and introduced Buy Now, Pay Later options through Klarna. Additionally, Ulta Beauty is pioneering agentic commerce by integrating with Google’s Gemini and launching Ulta AI, an online shopping agent designed to personalize discovery and shopping experiences.
The company is scaling emerging businesses such as Ulta Beauty Media and Marketplace to diversify revenue streams. Media recently introduced a YouTube enhanced measurement product to provide deeper insights for brand partners, while the Marketplace has expanded to offer more than 325 brands and 8,000 SKUs. Furthermore, Ulta Beauty is broadening its reach in the wellness category by launching brands like Gruns and Medicine Mama, focusing on nutrition, supplements and intimate skincare to integrate into consumers' essential routines.
The company continued to expand its international footprint with new store openings across key markets. Space NK maintained healthy, balanced growth while expanding its customer base and market share in the U.K. and Ireland. Expansion also progressed in Mexico with two new stores, while franchise partner Alshaya opened the third Middle East location at Dubai Mall. Overall, Ulta Beauty’s expansion into social commerce, AI-powered experiences, media, wellness and international markets is creating new growth avenues beyond traditional retail.
The Zacks Rundown for ULTAThe company’s shares have lost 0.1% in the past year compared with the industry’s 4% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 15.77, higher than the industry’s average of 14.67. ULTA currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings implies a year-over-year rise of 11.8% and 11.3%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 14.3% and 30.4%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Estée Lauder Companies Inc. (EL - Free Report) manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. At present, EL carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for EL’s current fiscal-year sales and earnings indicates growth of 4.5% and 59.6%, respectively, from the year-ago figures. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Interparfums, Inc. (IPAR - Free Report) manufactures, markets, and distributes a range of fragrances and fragrance-related products in the United States and internationally. At present, the company holds a Zacks Rank of 2.
The consensus estimate for Interparfums’ current fiscal-year sales and earnings implies a decline of 0.1% and 8%, respectively, from the year-ago figures. IPAR delivered a trailing four-quarter earnings surprise of 8%, on average.
Key Takeaways Ulta Beauty posts 5.3% comparable sales growth, led by e-commerce and store performance.Ulta Beauty expands digital capabilities with TikTok Shop, AI tools and same-day delivery options. ULTA grows loyalty membership to nearly 47 million, supporting personalization and engagement. Ulta Beauty, Inc.'s (ULTA - Free Report) omnichannel strategy is a key contributor to first-quarter fiscal 2026 performance. The company reported a 5.3% increase in comparable sales, supported by broad-based growth across all channels. E-commerce was a notable driver, delivering mid-teens sales growth in the quarter, while physical stores also contributed with low single-digit growth. Management emphasized that the balanced performance across digital and store channels underscores the strength of its omnichannel approach.
To enhance the digital guest experience, Ulta Beauty expanded its same-day delivery options through Uber Eats and introduced Buy Now, Pay Later functionality via Klarna. A significant strategic milestone was the launch of a TikTok Shop, featuring exclusive brands and a shoppable live stream that garnered over 5 million impressions. This initiative is designed to position Ulta Beauty at a critical discovery point for younger consumers. Furthermore, the company is leveraging AI through the introduction of an online shopping agent, Ulta AI, and integration with Google’s Gemini to enable agentic commerce.
Physical stores remain a cornerstone of the strategy, with 16 net new stores opened during the quarter. These locations were supported by major promotional events like 21+ Days of Beauty, and the company announced a new highly experiential Times Square flagship slated to open in late 2027 to further drive brand awareness.
The omnichannel ecosystem is unified by the Ulta Beauty Rewards program, which grew 4% year-over-year to nearly 47 million members. By utilizing this vast first-party data, Ulta Beauty is enhancing personalization to predict replenishment needs and maximize cart conversions. Management emphasized that this integrated approach allows guests to browse, buy, and fulfill purchases in the way that best fits their lifestyles. Overall, Ulta Beauty’s integrated omnichannel ecosystem, powered by AI, personalization and loyalty, positions the company to drive sustained customer engagement and growth.
The Zacks Rundown for ULTAThe company’s shares have lost 0.9% in the past year compared with the industry’s 4.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 15.64, higher than the industry’s average of 14.66. ULTA currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings per share implies a year-over-year rise of 11.8% and 11.3%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 13.8% and 30.4%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Estée Lauder Companies Inc. (EL - Free Report) manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. At present, EL sports a Zacks Rank of 1.
The Zacks Consensus Estimate for EL’s current fiscal-year sales and earnings indicates growth of 4.5% and 59.6%, respectively, from the year-ago figures. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Interparfums, Inc. (IPAR - Free Report) manufactures, markets, and distributes a range of fragrances and fragrance-related products in the United States and internationally. At present, the company holds a Zacks Rank of 2 (Buy).
The consensus estimate for Interparfums’ current fiscal-year sales and earnings implies a decline of 0.1% and 8%, respectively, from the year-ago figures. IPAR delivered a trailing four-quarter earnings surprise of 8%, on average.
Chief Executive Kecia Steelman pointed to broad-based growth across all channels and major categories, and said the results show the cosmetics and fragrances retailer's strategy is working in an uncertain economic landscape.
Here's a look at the key metrics from the quarter.
ULTA stock is moving. Watch the price action here. Ulta reported quarterly earnings of $7.74 per share, which beat the Street estimate of $6.86 by 12.83%, according to Benzinga Pro data.
Quarterly revenue came in at $3.16 billion, which beat the consensus estimate of $3.09 billion and was up from $2.85 billion in the same period last year.
Ulta compared first-quarter 2026 results to the prior year’s quarter:
“Fiscal 2026 is off to a strong start, driven by broad-based growth across all channels and major categories. Our results demonstrate the strengths of our model, focused execution of our talented associates, and the effectiveness of our strategy in an uncertain macroeconomic landscape,” said Kecia Steelman, CEO of Ulta Beauty.
Looking AheadUlta Beauty raised its fiscal 2026 GAAP EPS guidance to $28.36 to $28.80, versus the $28.42 analyst estimate and affirmed its revenue outlook of $13.14 billion to $13.26 billion, versus the $13.17 billion estimate.
ULTA Stock Price Activity: According to data from Benzinga Pro, Ulta Beauty stock climbed 5.43% to $521.95 in Tuesday's extended trading.
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Ulta Beauty and an Ultimate Entry: Price Resets After Profit MissUlta Beauty NASDAQ: ULTA reported a strong start to fiscal 2026, with management citing broad-based sales growth across channels and categories, improved gross margin and continued progress on strategic initiatives including international expansion, marketplace, wellness, media and artificial intelligence.
On the company’s first-quarter earnings call, President and Chief Executive Officer Kecia Steelman said Ulta entered the year focused on maintaining momentum while “optimizing our model with financial discipline to deliver profitable growth.” She said the company’s U.S. business remains “fundamentally strong,” while newer businesses are gaining traction and contributing to results.
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3 Retailers at 52-Week Highs With More Room to RunFor the quarter, Ulta reported net sales growth of 11.1% to $3.2 billion, compared with $2.8 billion a year earlier. Comparable sales rose 5.3%, driven by a 3.7% increase in average ticket and a 1.6% increase in transactions. Diluted earnings per share increased 15.5% to $7.74.
Sales Growth Led by Stores, E-Commerce and Fragrance Chief Financial Officer Chris DelOrefice said total sales growth, excluding the impact of Space NK, was in the high single-digit range. During the quarter, Ulta opened 16 net new Ulta Beauty stores and one new Space NK store.
3 Stocks Most Likely to Split in 2026Both stores and digital contributed to comparable sales growth. DelOrefice said e-commerce delivered mid-teen sales growth, while comparable stores posted low single-digit sales growth. February comp sales increased in the low double digits as the company lapped its weakest comp performance of fiscal 2025, while March and April grew in the low single-digit range.
Fragrance was the company’s strongest category again in the quarter, delivering high-teen comparable growth and increasing to 12% of total revenue from 11% a year earlier. DelOrefice said growth was driven by newness from luxury brands including YSL, Carolina Herrera and Valentino, the early launch of Balmain, and innovation from exclusive brand NOYZ.
Haircare delivered high single-digit comparable growth, supported by prestige haircare, new brands including amika and Moroccanoil, and continued traction from exclusive brand Cécred. Makeup increased in the low single digits, driven mainly by prestige makeup and guest engagement with Rare Beauty, as well as newness from MAC, Kylie Cosmetics and Estée Lauder. Skincare and wellness posted low single-digit comp growth, while services increased in the mid-single digits.
Gross Margin Improves as Shrink Declines Gross margin increased 100 basis points to 40.1% of sales, which DelOrefice attributed primarily to lower inventory shrink and higher merchandise margin. He said Ulta saw shrink reductions “across every category and every region” during the quarter, following process improvements, associate training and targeted actions in high-risk locations.
Merchandise margin also improved, helped by better inventory turns and favorable category mix from Space NK. DelOrefice said elevated fuel prices resulted in higher-than-planned transportation costs, but supply chain productivity and efficiency efforts helped offset the pressure.
Selling, general and administrative expenses increased 14.6% to $850 million, as planned, due primarily to Space NK and investments supporting the company’s Ulta Beauty Unleashed strategy. Operating profit rose 11.6% to $448 million, or 14.2% of sales. Net income increased 11.6% to $340 million.
Guidance Maintained for Sales, Raised for Profit and EPS Ulta maintained its full-year net sales outlook, expecting growth of 6% to 7%. The company also maintained its comparable sales growth forecast of 2.5% to 3.5%.
However, management raised its operating profit expectations, now forecasting growth of 6.5% to 9% for the year. Ulta also increased its diluted EPS forecast to a range of $28.36 to $28.80, representing growth of 10.6% to 12.3%. The updated estimate assumes a weighted average share count of about 43 million shares and a tax rate of approximately 24.5%.
DelOrefice said the company continues to expect gross margin to be roughly flat for the full year, with higher inventory productivity, supply chain productivity and modest shrink improvement expected to offset higher fuel costs and targeted investments. SG&A growth is expected to be in line with or slightly below net sales growth for the year.
The company also reiterated its plan to return capital to shareholders. In the first quarter, Ulta repurchased $555 million of stock, using cash and its revolver. Management previously increased its fiscal 2026 stock buyback target to $1.5 billion from $1 billion.
Strategic Initiatives Include TikTok Shop, Marketplace and AI Steelman highlighted continued progress on the company’s Ulta Beauty Unleashed strategy. In stores, Ulta and its brand partners executed more than 40,000 in-store events during the quarter, including activations for Coach, Cécred and Live Tinted, and education workshops for brands including Redken, Rare Beauty and Lancôme.
On the digital side, Steelman said e-commerce momentum was supported by investments in infrastructure and enhancements such as expanded same-day delivery through Uber Eats and buy now, pay later options through Klarna. Ulta also launched its TikTok Shop during the quarter, with an initial focus on exclusive brands. Steelman said the company’s first TikTok shoppable livestream at Ulta Beauty World generated more than five million impressions and strong gross merchandise value.
The company’s loyalty program expanded to nearly 47 million members, up 4% year over year. Steelman said Ulta is using first-party loyalty data and technology improvements to enhance personalization, including efforts to predict replenishment purchases and improve cart conversion.
Ulta’s marketplace ended the quarter with more than 325 brands and over 8,000 SKUs across seven assortment focus areas. In wellness, the company added brands including Grüns and Medicine Mama. Steelman also said UB Media, the company’s retail media business, is rolling out new capabilities, including a YouTube enhanced measurement product.
Management Cites Healthy Beauty Demand but Value-Focused Consumers Management said the beauty and wellness categories remain healthy, though consumers are increasingly focused on value amid macroeconomic uncertainty, inflationary pressures and higher fuel prices.
Steelman said Ulta is positioned to respond through its mass-to-luxury assortment, omnichannel options, loyalty program and targeted promotions. In response to an analyst question, she said fragrance is one area where marketing and merchandising investments are paying off, particularly around events such as Mother’s Day.
Looking ahead, Steelman said Ulta is beginning work on a new experiential flagship location in Times Square, New York, expected to open in late 2027. She said the store will combine technology, entertainment, convenience and the company’s assortment to support guest experiences and brand activations.
“We are investing with discipline in the areas that matter the most,” Steelman said, pointing to assortment, omnichannel experience and deeper guest loyalty as priorities while the company navigates a dynamic environment.
About Ulta Beauty NASDAQ: ULTAUlta Beauty, Inc NASDAQ: ULTA is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.
The retailer's product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Ulta Beauty (ULTA - Free Report) came out with quarterly earnings of $7.74 per share, beating the Zacks Consensus Estimate of $6.9 per share. This compares to earnings of $6.7 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +12.20%. A quarter ago, it was expected that this beauty products retailer would post earnings of $8 per share when it actually produced earnings of $8.01, delivering a surprise of +0.13%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Ulta, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $3.16 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.64%. This compares to year-ago revenues of $2.85 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ulta shares have lost about 17.2% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Ulta?While Ulta has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ulta was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $6.15 on $2.99 billion in revenues for the coming quarter and $28.49 on $13.22 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Miscellaneous is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Five Below (FIVE - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.
This discount retailer is expected to post quarterly earnings of $1.70 per share in its upcoming report, which represents a year-over-year change of +97.7%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level.
Five Below's revenues are expected to be $1.2 billion, up 24.2% from the year-ago quarter.
For the quarter ended April 2026, Ulta Beauty (ULTA - Free Report) reported revenue of $3.16 billion, up 11.1% over the same period last year. EPS came in at $7.74, compared to $6.70 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.11 billion, representing a surprise of +1.64%. The company delivered an EPS surprise of +12.2%, with the consensus EPS estimate being $6.90.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Ulta performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable sales - YoY change: 5.3% versus the eight-analyst average estimate of 4.3%.Total stores open at end of the quarter: 1,608 compared to the 1,517 average estimate based on six analysts.Number of stores opened during the quarter: 19 versus the five-analyst average estimate of 13.Net Sales by Primary Category - Other: 2% versus the two-analyst average estimate of 2%.Net Sales by Primary Category - Fragrance: 12% versus the two-analyst average estimate of 11%.Net Sales by Primary Category - Haircare: 18% versus the two-analyst average estimate of 18%.Net Sales by Primary Category - Cosmetics: 40% versus the two-analyst average estimate of 39.2%.Net Sales by Primary Category - Services: 4% compared to the 3.8% average estimate based on two analysts.View all Key Company Metrics for Ulta here>>>
Shares of Ulta have returned -3.3% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Net Sales: Increased 11.1% to $3.2 billion compared to $2.8 billion last year.Comparable Sales Growth: Increased 5.3%, driven by a 3.7% increase in average tic
Key Takeaways ULTA Q1 net sales rose 11.1% to $3.16B; comparable sales increased 5.3%.Ulta Beauty kept fiscal 2026 sales guidance, but raised operating income and EPS outlook.ULTA repurchased $555M in Q1 and now plans $1.5B of buybacks for fiscal 2026. Ulta Beauty, Inc. (ULTA - Free Report) used its first-quarter call to make a broader point than the headline beat. Management argued the business is gaining traction across channels, categories and newer growth vehicles while keeping a tighter grip on profitability.
That message mattered because the company left its sales outlook unchanged in a tougher consumer backdrop, while still lifting profit and EPS expectations for fiscal 2026.
ULTA Builds on a Strong CorePresident and CEO Kecia Steelman said the U.S. business remains fundamentally strong, with growth supported by stores, e-commerce and major product categories.
Net sales rose 11.1% to $3.16 billion, surpassing the consensus estimate by 1.64%. Adjusted earnings per share of $7.74 topped the Zacks Consensus Estimate of $6.90 by 12.2%.
Comparable sales increased 5.3%, driven by a 3.7% increase in average ticket and a 1.6% gain in transactions. Steelman said performance was broad-based, with prestige share gains and roughly flat share in mass beauty.
Management also pointed to digital momentum. E-commerce posted mid-teen sales growth, helped by same-day delivery expansion, Klarna buy now, pay later options and buy online, pick up in store capabilities.
Ulta Beauty Expands Beyond the CoreSteelman spent meaningful time on growth initiatives that extend beyond the legacy U.S. beauty model. Space NK continued to post healthy growth, while Ulta added stores in Mexico and opened a third Middle East location through franchise partner Alshaya.
The company also highlighted marketplace, wellness and media as incremental growth drivers. Marketplace ended the quarter with more than 325 brands and over 8,000 SKUs, while wellness benefited from assortment expansion in supplements, self-care and intimate care.
Social commerce emerged as another priority. Steelman said TikTok Shop is being used less as a pure sales channel and more as a customer acquisition and brand-building tool, especially for younger shoppers and Ulta’s exclusive brands
ULTA Finds Profit Levers in the ModelChief financial officer Chris DelOrefice framed the quarter as proof that Ulta can drive profitable growth, not just sales growth. Gross margin expanded 100 basis points to 40.1%, helped by lower inventory shrink and better merchandise margin.
Shrink improvement stood out as a recurring theme. DelOrefice said targeted actions in higher-risk stores, better processes and training, and data-driven execution produced shrink reductions across every category and region.
Those gains helped offset higher fuel-related transportation costs and a 14.6% increase in SG&A expense.Management tied the expense growth mainly to Space NK and investments already underway in the Ulta Beauty Unleashed strategy.
Ulta Beauty Keeps Sales View IntactDespite the strong quarter, management did not raise its top-line outlook. Ulta still expects fiscal 2026 net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5%.
What did change was the profit outlook. Operating income growth guidance moved to 6.5% to 9% from 6% to 9%, and EPS guidance increased to $28.36 to $28.80 from $28.05 to $28.55.
DelOrefice said the company is taking a measured stance because of macro uncertainty, even as first-quarter execution came in strong. He added that Ulta expects stronger sales growth in the first half, aided by Space NK and a tougher comparison base later in the year.
ULTA Faces Questions on Traffic and CompetitionAnalysts repeatedly pressed management on the cadence of comparable sales, traffic and the competitive backdrop. Steelman said February benefited from lapping a weak comparison, while March and April comps were in the low single digits, largely in line with expectations.
Questions also centered on whether the beauty category is getting more promotional and whether Ulta needs extra investment to protect its share.
Steelman responded that beauty remains competitive, but said exclusivity, brand building and the company’s mass-to-luxury assortment remain clear differentiators.
On traffic, management emphasized marketing, events, loyalty and personalization rather than a broad pricing response. The company’s loyalty base reached nearly 47 million members, up 4% year over year, which executives described as a major advantage in targeted engagement.
Ulta Beauty Puts Cash Behind the PlanCapital allocation was another key message on the call. Ulta repurchased 958,323 shares for $555 million in the quarter and ended May with $1.3 billion still available under its authorization.
DelOrefice said the company now plans to buy back $1.5 billion of stock in fiscal 2026, up from the prior $1 billion target. He said management views the current environment as an attractive opportunity to deploy capital while still funding growth.
The company also continued investing in stores and infrastructure. Ulta opened 16 net new U.S. stores and one Space NK location in the quarter, and it is planning a highly experiential Times Square flagship for late 2027.
ULTA Stays Focused on Share and DisciplineThe tone coming out of the call was confident but controlled. Steelman consistently returned to the idea that Ulta can still gain share while staying disciplined on costs and selective on where it invests.
That balance now looks central to the 2026 story. Management is pushing digital, international, marketplace, wellness and AI initiatives, but it is also signaling that margin protection and earnings growth matter just as much as top-line expansion.
Zacks Signals Favor Growth, But Rank Stays NeutralULTA carries a Zacks Rank #3 (Hold), along with a Growth Score of A, Momentum Score of B, Value Score of C and VGM Score of A. That combination points to favorable growth and blended style characteristics, even if the rank itself is not in the most bullish tier. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores are designed to complement the Zacks Rank, not override it. A Zacks Rank #3 can still support a neutral stance, while the strong Growth and VGM grades indicate better underlying style characteristics than the rank alone. That said, the Zacks Rank can change as earnings estimate revisions move in the wake of quarterly results.
1. Microsoft Breaks Into AI "Vibe Coding" Microsoft (MSFT 0.80%) – expanding beyond providing AI cloud infrastructure and services – unveiled its new AI coding tool at its Build conference in San Francisco Tuesday. Using a process known as vibe coding, MAI-Code-1-Flash allows non-technical users to produce software source code through text-based interaction. The company also announced a new MAI-Thinking-1 reasoning model, "built for high efficiency and performance, but importantly, at a low token cost."
"What you just saw is a pretty significant shift": In his address, CEO Satya Nadella added, "We believe the time has come for every company to just move from consuming a frontier model to fully participating ... in the frontier ecosystem." The stock closed the day down 4.2%. Commercially useful quantum machines targeted for 2029: Competing with IBM (IBM 0.66%), Microsoft set an ambitious schedule as it introduced its new Majorana 2 quantum processor. The new chip can reportedly keep qubits stable for 20 seconds – around 1,000 times longer than the earlier Majorana 1. 2. After-Hours Earnings Roundup: Palo Alto and Ulta Beauty Palo Alto (PANW 0.11%) fell over 5% in early trade, even after CEO Nikesh Arora said "our Q3 performance was exceptional" during yesterday's earnings call from the Rule Breakers recommendation. Annual recurring revenue from the company's Next Generation Security platform surged 60% year over year (YoY), to hit $8.13 billion – though management warned of "rising component costs, particularly in memory and storage."
"This is our most significant quarterly outperformance to date and surpassed our guidance": Arora added, "Over the past quarter, Frontier AI development reached a critical inflection point," as the company raised Q4 revenue guidance to between $11.415 billion and $11.425 billion. Ulta Beauty (ULTA 1.32%) reported an 11.1% YoY increase in Q1 revenue on Tuesday. CEO Kecia Steelman told investors, "Performance continues to be fueled by the strength of our core U.S. business," adding "We gained share in prestige beauty, and we were roughly flat in mass beauty." The stock, recommended by both Team RB and HG, rose around 1% in pre-market trading. 3. What Foolish Investors Ought to Watch on Wednesday Medtronic (MDT 0.31%) reported its highest annual revenue growth to date, of 8.4%, this morning – as Q4 beat the Dividend Investor rec's 9% YoY revenue rise in Q3, with 9.9% this time. Cardiac Ablation Solutions revenue increased 78% globally over Q4 last year, and 124% in the U.S. The company announced its 49th consecutive year of dividend rises, with the stock nudging up a little over 1% in response. Macy's (M +1.54%) reported its "strongest first quarter in four years," as total comparable sales rose 3% in Q1 – with Bloomingdale's sales up 10.2%. CEO Tony Spring spoke of "exceeding expectations for the fifth consecutive quarter." The company returned $50 million in cash to shareholders in the quarter. The stock rose around 2% in response. Five Below (FIVE 1.92%) – recommended by Team Rule Breakers – will reveal first quarter results for fiscal 2026 after the market closes. As highlighted in Monday's Breakfast News, CrowdStrike (CRWD 0.85%), Broadcom (AVGO 1.23%), and Veeva (VEEV 1.99%) will also report this afternoon. 4. Report: SpaceX Decides IPO Pricing SpaceX is aiming for a $135 share price, Reuters reported, with over 555 million shares potentially up for sale – to raise around $75 billion in what would be an all-time record IPO. The terms of the offering could be revealed as soon as today, said Bloomberg, with formal marketing starting tomorrow.
"It may be a stretch to achieve the valuation they want even with very generous multiples": Not everyone is bullish about the prospects, as Vey-Sern Ling at Union Bancaire Privee sounded a caution, though he added, "The market has always given Elon Musk the benefit of the doubt." "My guess is following this stock and its potential growth will require much more than reading the financial statements. Why? The innovation story will foreshadow the financial story": Fool analyst Tim Beyers recently noted, "At root, SpaceX will either be a triumph or failure of extra-terrestrial engineering. Understand that, and we'll have a better chance of properly valuing a business that casts itself as invaluable." 5. May Review: Software and Solar Soared As the market has reached new highs, market valuations have also neared levels not seen since the peak of the dot-com bubble. If you're an experienced investor with a high risk tolerance and a long timeline until you need to turn your stocks into cash, then this may be just noise ... But for those near or in retirement, this might be a good time to reevaluate how much of your portfolio should be protected in safer cash and bonds -- while still keeping a significant portion of your portfolio invested in stocks. --Robert, Brokamp, cfa
6. Your Take Are there any themes or sectors you're reconsidering at the start of this new month?
Discuss with friends and family, or become a member to hear what your fellow Fools are saying!
This image and article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom, CrowdStrike, International Business Machines, Medtronic, Microsoft, Ulta Beauty, and Veeva Systems. The Motley Fool recommends Five Below and Palo Alto Networks. The Motley Fool has a disclosure policy.
Ulta Beauty, Inc. offers a compelling value play, trading at a P/E of 17.5x with robust Q1 results and a double beat on earnings. ULTA's growth is driven by store expansion, improved revenue mix, and a loyal member base, supporting a long-term compounding thesis. Despite yellow flags—such as inorganic growth, uneven comp sales, and buybacks funded with credit—the valuation compensates for macro and competitive risks.
Ulta Beauty Inc (NASDAQ:ULTA) reported first quarter results that exceeded Wall Street expectations, but shares fell nearly 6% as investors focused on a modest increase to the company's full-year earnings guidance.
Ulta raised its fiscal 2026 earnings guidance to a range of $28.36 to $28.80 per share, up from its prior forecast of $28.05 to $28.55. However, the midpoint of the new range, $28.58, was only slightly above the previous midpoint and roughly in line with analysts' expectations.
The company left its forecasts for net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5% unchanged. Ulta slightly increased its operating income growth outlook to 6.5% to 9%, compared with its previous projection of 6% to 9%.
Capital expenditures are still expected to be between $400 million and $450 million for the fiscal year.
For the quarter ended May 2, Ulta reported earnings per share of $7.74, up 15.5% from a year earlier and ahead of analysts' expectations of $6.87.
Revenue rose 11.1% year-over-year to $3.16 billion, topping the consensus estimate of $3.11 billion.
Comparable sales increased 5.3%, exceeding analyst expectations for roughly 4.6% growth. The gain was driven by a 3.7% increase in average ticket size and a 1.6% increase in transactions.
The company also returned $555 million to shareholders through share repurchases during the quarter.
"Fiscal 2026 is off to a strong start driven by broad-based growth across all channels and major categories," Ulta CEO Kecia Steelman said in a statement.
"Our results demonstrate the strengths of our model, focused execution of our talented associates, and the effectiveness of our strategy in an uncertain macroeconomic landscape."
Ulta Beauty (ULTA) is experiencing a decline in stock price despite exceeding expectations in its Q1 performance. The company reported earnings per share (EPS)
Key Takeaways Ulta Beauty beat Q1 FY26 earnings and sales estimates; net sales rose 11.1% to $3.16B. Ulta Beauty comps grew 5.3% as average ticket rose 3.7%, and transactions increased 1.6%.Ulta Beauty raised FY26 EPS guidance to $28.36-$28.80 and kept 6%-7% net sales growth. Ulta Beauty, Inc. (ULTA - Free Report) reported first-quarter fiscal 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company delivered double-digit sales and earnings growth, driven by broad-based strength across channels and product categories, along with contributions from the Space NK acquisition.
The beauty retailer reported first-quarter fiscal 2026 earnings per share of $7.74, beating the Zacks Consensus Estimate of $6.90. The bottom line increased 15.5% from the year-ago quarter’s reported figure of $6.70.
Net sales rose 11.1% year over year to $3,163.9 million and surpassed the Zacks Consensus Estimate of $3,113 million. Growth was primarily driven by higher comparable sales, contributions from the Space NK acquisition and sales from new stores. Comparable sales increased 5.3%, supported by a 3.7% rise in average ticket and a 1.6% jump in transactions.
ULTA’s Quarterly Results: Key Metrics & InsightsUlta Beauty’s gross profit increased 13.8% year over year to $1,267.6 million. Gross margin expanded 100 basis points to 40.1% from 39.1%, primarily due to lower inventory shrink and higher merchandise margin. Improvements in inventory productivity and favorable category mix also aided profitability.
Selling, general and administrative (SG&A) expenses increased 14.6% to $814.7 million from $710.6 million reported in the prior-year quarter. As a percentage of net sales, SG&A expenses rose to 25.8% from 24.9%. The increase was primarily due to the acquisition of Space NK, strategic enterprise investments and higher store-related expenses, partially offset by leverage in advertising expenses.
Operating income surged 11.6% to $448.3 million from $401.8 million in the year-ago quarter. As a percentage of net sales, operating income improved slightly to 14.2% from 14.1% in the prior-year period.
ULTA’s Category Performance Remains Broad-BasedPerformance was broad-based across all major categories in the quarter. Fragrance remained the strongest category, delivering high-teens comparable sales growth, driven by newness from luxury brands such as YSL, Carolina Herrera, Valentino and Balmain, as well as innovation from exclusive fragrance brand NOYZ.
Haircare generated high-single-digit comparable growth, supported by strength in prestige haircare, new and exclusive brands, and healthy demand for hair-treatment products.
Makeup posted low-single-digit comparable sales growth, aided by prestige makeup performance and the successful launch of Rare Beauty. Skincare and wellness delivered low-single-digit comparable growth, benefiting from prestige skincare, mass skincare and continued momentum in supplements and self-care products. Services revenues increased in the mid-single-digit range, supported by strong member engagement.
Ulta Beauty’s Strategic Initiatives Gain TractionUlta Beauty continued to advance its “Ulta Beauty Unleashed” strategy during the quarter. The company launched TikTok Shop, positioning itself as a key beauty discovery platform and strengthening engagement with younger consumers. Ulta Beauty also added more than 20 new brands during the quarter, expanded its marketplace assortment to more than 325 brands and 8,000 SKUs and grew its loyalty program to approximately 46.9 million members, up 4% year over year.
The company continued expanding its international presence through Space NK, Mexico and the Middle East. Management also announced plans for a highly experiential flagship location in Times Square, NY, which is expected to open in late 2027.
ULTA’s Financial Health Snapshot & Store UpdateThis Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $166.3 million and short-term investments of $55 million. Merchandise inventories increased 12.5% year over year to $2.4 billion. Short-term debt totaled $144.9 million, while stockholders’ equity stood at $2.58 billion at quarter-end.
Net cash provided by operating activities was $261.9 million in the first quarter. Capital expenditures totaled $58.3 million, primarily related to investments in new and existing stores.
During the quarter, Ulta Beauty repurchased 958,323 shares of its common stock for $555 million. As of May 2, 2026, approximately $1.3 billion was available under the company’s $3 billion share buyback authorization announced in October 2024.
Ulta Beauty opened 16 net new stores in the United States and one net new Space NK store during the quarter. The company ended the period with 1,521 Ulta Beauty stores and 87 Space NK stores.
What to Expect From ULTA in FY26?Following its better-than-expected first-quarter performance, Ulta Beauty updated its fiscal 2026 outlook.
The company continues to expect net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5%. Management now anticipates operating income growth of 6.5% to 9% compared with its previous expectation of 6% to 9%.
Ulta Beauty raised its fiscal 2026 earnings per share guidance to the range of $28.36-$28.80 from the prior range of $28.05-$28.55.
Shares of ULTA have tumbled 25.2% over the past three months compared with the industry’s decline of 17.5%.
Stocks to ConsiderRoss Stores (ROST - Free Report) , a leading U.S. off-price retailer operating Ross Dress for Less and dd's DISCOUNTS stores, sports a Zacks Rank #1 (Strong Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings suggests growth of 8.2% and 15.6%, respectively, from the year-ago figures.
Five Below, Inc. (FIVE - Free Report) , which operates as a specialty value retailer, currently carries a Zacks Rank #2 (Buy). FIVE delivered a trailing four-quarter earnings surprise of 63.4%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings suggests growth of 11.5% and 20.2%, respectively, from the year-ago figures.
The TJX Companies (TJX - Free Report) , a major off-price apparel and home fashions retailer, currently carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for The TJX Companies’ current fiscal-year sales calls for growth of nearly 5.8%, and estimates for earnings suggest an 8.9% increase from the year-ago figure. TJX delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Ulta Beauty and an Ultimate Entry: Price Resets After Profit MissUlta Beauty NASDAQ: ULTA reported double-digit sales and earnings growth in the first quarter of fiscal 2026, with management citing broad-based gains across channels and major merchandise categories, stronger gross margin and continued traction from strategic initiatives including international expansion, marketplace, wellness and retail media.
Chief Executive Officer Kecia Steelman said the company entered the year focused on continuing progress after meeting its fiscal 2025 goals while optimizing the business “with financial discipline to deliver profitable growth.” She said Ulta Beauty’s core U.S. business remains “fundamentally strong,” and that newer growth initiatives are contributing to results.
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3 Retailers at 52-Week Highs With More Room to RunFor the quarter, net sales rose 11.1% to $3.2 billion from $2.8 billion a year earlier. Comparable sales increased 5.3%, driven by a 3.7% increase in average ticket and a 1.6% rise in transactions. Diluted earnings per share increased 15.5% to $7.74.
Chief Financial Officer Chris DelOrefice said total sales growth, excluding the impact of Space NK, was in the high single-digit range. Ulta Beauty opened 16 net new Ulta Beauty stores and one new Space NK store during the quarter. Other revenue rose $6 million to $62 million, primarily due to higher income from the company’s credit card program and commissions from UB Marketplace, partially offset by lower royalty income from its partnership with Target Corporation.
Comparable Sales Lifted by Stores and Digital 3 Stocks Most Likely to Split in 2026Steelman said performance was broad-based, with all channels and major categories contributing positively. She said Ulta Beauty gained share in prestige beauty and was roughly flat in mass beauty.
DelOrefice said February delivered low double-digit comparable sales growth as the company lapped its weakest comparable performance from fiscal 2025, while March and April were in the low single-digit range. Both stores and digital contributed to comparable sales growth, with e-commerce delivering mid-teen sales growth and comparable stores posting low single-digit sales growth.
Steelman highlighted continued momentum in e-commerce, supported by infrastructure investments and newer offerings such as expanded same-day delivery through Uber Eats and buy now, pay later options through Klarna. She also pointed to the launch of Ulta Beauty’s TikTok Shop, which is focused on “only at Ulta” exclusive brands. The company hosted its first TikTok shoppable livestream at its Ulta Beauty World event, which Steelman said generated more than 5 million impressions and “strong GMV.”
In response to an analyst question, Steelman said TikTok Shop is still in its early phases and is being used primarily for guest acquisition and marketing rather than as a main driver of e-commerce revenue. “We do see that it’s not just an e-com play,” she said, adding that the company also sees a halo impact for stores.
Fragrance Leads Category Growth DelOrefice said fragrance was Ulta Beauty’s strongest category again in the quarter, delivering high-teen comparable growth and increasing from 11% to 12% of total revenue. Growth was driven by newness from luxury brands including YSL, Carolina Herrera and Valentino, as well as innovation from exclusive brand NOYZ.
Haircare delivered high-single-digit comparable growth, led by prestige haircare. DelOrefice cited strong performance from amika and Moroccanoil, while hair treatments and scalp regimens outperformed. Hair tools declined as the company lapped prior-year launches and saw softness in traditional tools.
Makeup comparable sales increased in the low-single-digit range, driven primarily by prestige makeup. DelOrefice pointed to guest engagement with Rare Beauty and newness from MAC, Kylie Cosmetics and Estée Lauder. Mass makeup was relatively flat. Skincare and wellness also delivered low-single-digit comparable growth, with strength in prestige skincare, mass skincare and wellness supplements partially offset by pressure in body care.
Services posted mid-single-digit comparable growth, supported by salon and specialty services, including ear piercing and makeup services.
Margins Improve as Shrink Declines Gross margin increased 100 basis points to 40.1% of sales, primarily due to lower inventory shrink and higher merchandise margin. DelOrefice said the company’s efforts to reduce shrink delivered benefits across every category and region during the quarter. Merchandise margin increased primarily due to improving inventory turns and favorable category mix from Space NK.
SG&A expense increased 14.6% to $850 million, as planned, driven mainly by Space NK and investments supporting the Ulta Beauty Unleashed strategy. Operating profit rose 11.6% to $448 million, or 14.2% of sales. Net income increased 11.6% to $340 million.
The company ended the quarter with $221 million in cash and short-term investments and $145 million in short-term debt. Inventory increased 12.5% to $2.4 billion, reflecting new brands, the Space NK acquisition and 70 net new Ulta Beauty stores. On a per-store basis, inventory increased 1.4%.
Guidance Maintained for Sales, Raised for Earnings Ulta Beauty maintained its fiscal 2026 net sales growth outlook of 6% to 7% and its comparable sales growth outlook of 2.5% to 3.5%. DelOrefice said the company expects net sales growth to be stronger in the first half, reflecting first-quarter performance and the benefit from Space NK.
The company raised its operating profit growth outlook and now expects operating profit to increase 6.5% to 9% for the year. DelOrefice said gross margin is expected to be roughly flat for the year, with higher inventory productivity, supply chain productivity and modest shrink improvement offsetting higher fuel costs and targeted investments.
Ulta Beauty also increased its diluted EPS guidance to a range of $28.36 to $28.80, representing growth of 10.6% to 12.3%. The updated guidance assumes a weighted average share count of about 43 million shares and a tax rate of approximately 24.5%. The company also reiterated its plan to increase fiscal 2026 share repurchases from $1 billion to $1.5 billion.
Strategic Initiatives Expand Steelman said Ulta Beauty expanded its loyalty program to nearly 47 million members, up 4% year over year, and is using first-party data and technology improvements to enhance personalization. She said the company is using loyalty data to understand behavior, predict replenishment purchases and drive cart conversion.
The company’s international efforts included new stores in Mexico and the Middle East. Steelman said Space NK continues to deliver “healthy, well-balanced growth” in the U.K. and Ireland. In Mexico, Ulta Beauty opened two stores, including a location in Mexico City, while franchise partner Alshaya opened a third Middle East store at the Dubai Mall.
Ulta Beauty’s marketplace ended the quarter with more than 325 brands and over 8,000 SKUs. The company also continued to expand wellness offerings and UB Media capabilities, including a new YouTube enhanced measurement product.
Steelman also announced that the company is beginning work on a highly experiential Ulta Beauty location in Times Square, New York, expected to open in late 2027. She said the flagship store will combine technology, entertainment, convenience and brand activations to create immersive guest experiences.
About Ulta Beauty NASDAQ: ULTAUlta Beauty, Inc NASDAQ: ULTA is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.
The retailer's product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.
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Should You Invest $1,000 in Ulta Beauty Right Now?Before you consider Ulta Beauty, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ulta Beauty wasn't on the list.
While Ulta Beauty currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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Ulta Beauty NASDAQ: ULTA has hurdles like any consumer company this year, but it is navigating the scene well, and its strategies are working. Focused on increased store count, international expansion, acquisitions, and expanding product lines, the company is growing, outperforming estimates, and on track to sustain strength in upcoming quarters.
Ulta Beauty Today
$470.62 -5.80 (-1.22%)
As of 12:56 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$452.05▼
$714.97P/E Ratio17.63
Price Target$644.91
The takeaway for investors is that Ulta Beauty’s stock price is at long-term lows, set up to rebound as the year progresses. The only question is the timing, and it may be sooner than early June price action suggests. With the company gaining traction, the stock at deep value levels, and sell-side forces in accumulation mode, the stock price has virtually nowhere to go but up.
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The initial analyst response to the company's Q1 earnings report sums up the situation nicely. It included several price target reductions, issued immediately following the report, but those are notes of caution within an otherwise bullish outlook. The price target reductions were a hit to sentiment, but the $651 consensus price target still offers a substantial upside opportunity in a Buy-rated stock. A move to Cannaccord’s new $731 target would equate to new all-time highs, and there are catalysts ahead to drive this market
Catalysts Loom for Ulta Beauty: Rebound AheadFuture earnings reports are likely to reveal additional momentum, sustaining a bullish outlook for this stock’s price. As it stands, MarketBeat tracks 27 analysts who rate the stock a consensus Moderate Buy, with a 75% Buy-side bias. The trailing 12-month (TTM) average price target of $688 implies a 40% upside from key support levels, and may be reached within months of a confirmed bottom. Signs the bottom has been reached include technical and sell-side factors; signs that new highs will be set include the analyst forecasts and technical factors.
Institutions are the driving force in this market. They own approximately 90% of the stock and have been accumulating it on a TTM basis. MarketBeat data reveal they were accumulating at a rate of nearly $2 per $1 for four consecutive quarters, even as price action was highly volatile. Meanwhile, the technical factors include a sharp convergence on the monthly price action. The MACD convergence shows a market gaining strength as it hit the early 2026 peak, setting it up to retest the existing high at least on the next rebound. Again, the only question is the timing, and it could easily begin by mid-summer, if not sooner.
Ulta Beauty Fires on All Cylinders in FQ1 2026Ulta Beauty had a solid Q1 with revenue growing by 11.1% to $3.16 billion, 130 basis points better than expected. The strength was driven by a 5.3% comp store increase, new stores, and acquisitions. Sales were strong across product categories, with cosmetics leading at up 40%. Skin care grew by 24%, hair by 18%, and fragrances by 12%, all strong showings. Sales were also strong across channels, revealing the impact of Ulta’s digitization and eCommerce shifts.
Margin news was also good. Fears of margin degradation tied to tariffs, macro headwinds, and aggressive growth plans were overblown. The company managed to widen its gross margin by 100 bps and keep costs under control. Operating income grew by 11.6%, adjusted net income by 10.8%, and diluted earnings per share by 15.5%, outpacing the consensus estimate by more than 1000 bps. Looking ahead, the company expects margin strength to continue. Management reaffirmed its revenue target and raised its earnings outlook to align with consensus figures.
Management also increased the 2026 buyback target, a trigger for institutional money flows. The increase was worth $500 million, bringing the total to $1.5 billion in a sign of confidence in future cash flow. The critical takeaway is that Ulta is aggressively reducing its share count while accelerating growth, raising questions about the valuation and stock price. At $465 per share, Ulta trades at only 7X its 10-year earnings outlook, suggesting that 200% or more in stock price upside is possible over time.
Ulta’s balance sheet provides no red flags, only reasons to believe share buybacks will continue. The quarter-ending highlights include a reduced cash offset by increased current and total assets, persistently low leverage, and a 6% increase in equity, despite heavy investment and capital returns. The likely outcome is that Ulta continues reducing its share count in upcoming quarters, accelerating its stock price rebound over time. The biggest risk for Ulta this summer is oil and gas prices and their impact on consumer habits.
Should You Invest $1,000 in Ulta Beauty Right Now?Before you consider Ulta Beauty, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ulta Beauty wasn't on the list.
While Ulta Beauty currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Looking to profit from the electric vehicle mega-trend? Click the link to see our list of which EV stocks show the most long-term potential.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Ulta Beauty (ULTA - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Ulta currently has an average brokerage recommendation (ABR) of 1.66, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.66 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 17 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 68% and 4% of all recommendations.
Brokerage Recommendation Trends for ULTA
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While the ABR calls for buying Ulta, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ULTA Worth Investing In?Looking at the earnings estimate revisions for Ulta, the Zacks Consensus Estimate for the current year has increased 0.8% over the past month to $28.67.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Ulta. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Ulta may serve as a useful guide for investors.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Ulta Beauty (ULTA - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this beauty products retailer a great growth pick right now.
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Ulta is 14.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 11.8% this year, crushing the industry average, which calls for EPS growth of 4%.
Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales.
Right now, Ulta has an S/TA ratio of 1.85, which means that the company gets $1.85 in sales for each dollar in assets. Comparing this to the industry average of 1.26, it can be said that the company is more efficient.
In addition to efficiency in generating sales, sales growth plays an important role. And Ulta looks attractive from a sales growth perspective as well. The company's sales are expected to grow 6.6% this year versus the industry average of 1%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Ulta. The Zacks Consensus Estimate for the current year has surged 0.8% over the past month.
Bottom LineUlta has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Ulta is a potential outperformer and a solid choice for growth investors.
Investors looking for stocks in the Retail - Miscellaneous sector might want to consider either Petco Health & Wellness (WOOF - Free Report) or Ulta Beauty (ULTA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Petco Health & Wellness is sporting a Zacks Rank of #1 (Strong Buy), while Ulta Beauty has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WOOF is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WOOF currently has a forward P/E ratio of 14.32, while ULTA has a forward P/E of 16.68. We also note that WOOF has a PEG ratio of 1.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ULTA currently has a PEG ratio of 1.50.
Another notable valuation metric for WOOF is its P/B ratio of 0.76. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ULTA has a P/B of 7.96.
Based on these metrics and many more, WOOF holds a Value grade of B, while ULTA has a Value grade of C.
WOOF sticks out from ULTA in both our Zacks Rank and Style Scores models, so value investors will likely feel that WOOF is the better option right now.
Key Takeaways Ulta Beauty's Q1 sales growth was 11.1%, with comparable sales rising 5.3% across channels.ULTA sees fragrance lead category growth, boosted by luxury brands and new product innovation.ULTA maintains fiscal 2026 outlook with expected sales growth of 6%-7%. Ulta Beauty, Inc. (ULTA - Free Report) continued to demonstrate strength in its business performance, as it delivered strong fiscal first-quarter 2026 results, with net sales growth of 11.1%. Comparable sales increased 5.3%, reflecting a 3.7% increase in average ticket and a 1.6% increase in transactions. Management highlighted that the performance was broad-based, with all channels and major categories contributing positively to the overall results.
Fragrance remained the company’s strongest-performing category during the quarter, delivering high-teens comparable sales growth and increasing its contribution to total revenues from 11% to 12%. The company continued to make progress toward its goal of becoming the leading fragrance destination, supported by strong execution. Growth was primarily driven by newness from core luxury brands, early momentum from Balmain, and innovation, such as the new milk scent format from the exclusive brand NOYZ.
The haircare category delivered strong performance during the quarter, achieving high single-digit comparable sales growth, driven primarily by strength in prestige haircare. Growth was supported by new brands such as Amika and Moroccanoil, along with continued momentum from exclusive brand Cecred. Hair treatments, including repair-focused products and scalp regimens, outperformed, while weakness in traditional hair tools offset growth from innovative brands. The makeup category also posted low single-digit comp growth, led by prestige makeup and supported by new brand launches and innovation across key brands.
Based on the strong execution in the first quarter, Ulta Beauty maintained its fiscal 2026 guidance for sales and comparable sales growth. The company continues to expect net sales to increase between 6% and 7% for the year, while comparable sales growth is expected to remain within the range of 2.5% to 3.5%. Overall, Ulta Beauty’s broad-based category momentum, strong customer engagement and fragrance-led growth position the company to sustain comparable sales momentum ahead.
How Do Sally Beauty & Kohl’s Fare?Sally Beauty Holdings, Inc. (SBH - Free Report) reported consolidated net sales of $903 million in the second quarter of fiscal 2026, reflecting 2.3% growth compared with the prior-year period. Consolidated comparable sales grew 1.3% in the quarter. For fiscal 2026, Sally Beauty tightened its net sales guidance range to $3.725-$3.75 billion from the previously guided range of $3.71-$3.77 billion, and expects comparable sales to be flat to up 1%.
Kohl’s Corporation (KSS - Free Report) reported a decline in first-quarter fiscal 2026 performance, with net sales decreasing 1.7% year over year to $3 billion. Comparable sales also decreased 1.1% in the first quarter, primarily driven by a decline in transactions. Kohl’s continues to expect comparable sales for the fiscal 2026 to be within the range of a 2% decrease to flat.
The Zacks Rundown for ULTAThe company’s shares have gained 3.8% in the past year against the industry’s 4.6% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 15.95, higher than the industry’s average of 14.45.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings per share implies a year-over-year rise of 11.8% and 11.3%, respectively.
Image Source: Zacks Investment Research
ULTA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
