Ulta Beauty(US:ULTA) ZACKSยท2024-11-26 23:46Core Viewpoint - Ulta Beauty is facing a challenging financial outlook with expected declines in earnings and revenue for the upcoming earnings report on December 5, 2024, which may impact investor sentiment [2][3]. Financial Performance - The stock closed at $360.47, reflecting a -0.6% change from the previous day, underperforming the S&P 500's gain of 0.57% [1]. - Over the past month, Ulta Beauty shares have decreased by 4.59%, contrasting with the Retail-Wholesale sector's gain of 6.19% and the S&P 500's gain of 3.15% [1]. Earnings Estimates - Analysts project earnings of $4.45 per share for the upcoming quarter, indicating a year-over-year decline of 12.23% [2]. - For the full year, earnings are estimated at $23.07 per share, down 11.37% from the previous year, with revenue expected to be $11.16 billion, a decrease of 0.43% [3]. Analyst Sentiment - Recent changes in analyst estimates are crucial as they reflect the evolving business landscape, with positive revisions seen as a favorable sign for the company's outlook [3][4]. - The Zacks Rank system, which evaluates these estimate changes, currently rates Ulta Beauty as 3 (Hold) [5]. Valuation Metrics - Ulta Beauty has a Forward P/E ratio of 15.72, which is higher than the industry average of 13.09, indicating a premium valuation [6]. - The company also has a PEG ratio of 2.08, aligning with the industry average, suggesting that growth expectations are factored into its valuation [7]. Industry Context - The Retail - Miscellaneous industry, to which Ulta Beauty belongs, has a Zacks Industry Rank of 163, placing it in the bottom 36% of over 250 industries, indicating weaker performance relative to other sectors [7][8].