2024-08-01 04:45:00 ET
Between disappointing quarterly results, lowered guidance, and a handful of recent downgrades, Ulta Beauty (NASDAQ: ULTA) isn't exactly an exciting investment prospect at this time. Shares have fallen 33% from their February high to a two-year low, in fact, specifically because the market is losing hope.
But as the old adage goes, it's always darkest before dawn. Smart investors should see this steep sell-off as a buying opportunity rather than a warning, understanding that this is still a great company. It's just bumping into a cyclical headwind. Indeed, Ulta may even be through most of that headwind.
If you're not familiar with it, Ulta Beauty is a cosmetics, fragrance, and skincare retailer. The company operates more than 1,250 brick-and-mortar stores selling products at a wide range of price points. Many of its stores are also salons, offering services like hairstyling, waxing, facials, and makeup application.
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