Ulta Beauty (ULTA) is a Great Momentum Stock: Should You Buy?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Summary: Ulta Beauty (ULTA) - Ulta Beauty currently holds a Momentum Style Score of B, indicating a positive outlook based on its price change and earnings estimate revisions [2] - The company has a Zacks Rank of 2 (Buy), which historically outperforms the market when combined with a Style Score of A or B [3] - Over the past week, ULTA shares have increased by 15.83%, significantly outperforming the Zacks Retail - Miscellaneous industry, which rose by 1.1% [5] - In a longer time frame, ULTA shares have gained 41.43% over the past quarter and 20.27% over the last year, while the S&P 500 has only moved 3.59% and 14.21%, respectively [6] - The average 20-day trading volume for ULTA is 954,132 shares, indicating a bullish trend as the stock is rising with above-average volume [7] Earnings Outlook - In the past two months, 11 earnings estimates for ULTA have been revised upwards, while only 1 has been revised downwards, leading to an increase in the consensus estimate from $23.05 to $23.54 [9] - For the next fiscal year, 6 estimates have moved upwards, compared to 3 downward revisions, suggesting a positive earnings outlook [9] Conclusion - Considering the positive momentum indicators and earnings outlook, ULTA is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]