ULTA - Ulta Beauty: Cheap Valuation In An Uncertain Economy I'd Hold
2024-06-25 08:17:13 ET
Summary
- Ulta is underpriced, and a correction could occur due to growth from their loyalty program, push into prestige cosmetics, and partnership with established brands like Target, DoorDash.
- Diluted EPS exceeded expectations, presenting upside potential for investors.
- Ulta beats average revenue and profit statistics while maintaining a below-average valuation for the beauty industry.
I rate Ulta Beauty ( ULTA ) as a Hold given its cheap valuation compared to competitors, uncertainty in the consumer economy, and pessimistic view on category growth....
Ulta Beauty: Cheap Valuation In An Uncertain Economy, I'd Hold