ULTA - 1 Growth Stock Down 32% to Buy Right Now
2024-06-20 04:10:00 ET
It's been a tough past few months for Ulta Beauty (NASDAQ: ULTA) and, by extension, for shareholders. Although the stock started the year out on a bullish foot, it has fallen steeply from its March peak thanks to a combination of competition and continued inflation. Namely, after sales growth slowed to a crawl in the fiscal 2024 first quarter (ended May 4), the cosmetics and skincare retailer lowered its full-year revenue guidance. Investors are understandably worried.
The sellers, however, have arguably overshot their target. At the same time, the narrative surrounding the company has also turned unnecessarily pessimistic. Analysts' current consensus price target of $487.90 is 28% above the stock's present price, suggesting its pullback is ultimately a buying opportunity. Investors just have to look further down the road to see the bigger picture.
While there are still challenges for Ulta to overcome, the growth headwinds the company presently faces are temporary.
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1 Growth Stock Down 32% to Buy Right Now