2024-01-31 08:30:00 ET
Summary
- Ulta Beauty, Inc. stock has posted an impressive performance with a 12% 5-year total return CAGR. However, its near-term performance has been relatively subdued.
- Ulta Beauty bottomed out in late October 2023, as it surged before its December earnings release.
- Ulta's significant retail presence and scale advantages position it well to sustain its competitive advantages.
- However, given its current valuation, its impending exit from its high-growth phase could suggest an impact on buying sentiments.
- I argue why Ulta Beauty, Inc. isn't beautiful enough for me at these levels, but I will consider it if I get another steep selloff.
I've been very impressed with the performance of Ulta Beauty, Inc. ( ULTA ) as a specialized retailer, notwithstanding its relatively subdued performance over the past year. However, long-term investors in ULTA will likely point to its impressive 12% 5Y total return CAGR as an indication of robust buying sentiments....
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Ulta Beauty Isn't Beautiful Enough For Me Before Another Steep Plunge