Ulta Beauty (ULTA) Surpasses Market Returns: Some Facts Worth Knowing

Ulta Beauty (ULTA) closed the most recent trading day at $686.44, moving +2.47% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.77%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 1.05%.

Prior to today's trading, shares of the beauty products retailer had gained 1.29% outpaced the Retail-Wholesale sector's loss of 6.07% and the S&P 500's loss of 0.98%.

The investment community will be paying close attention to the earnings performance of Ulta Beauty in its upcoming release. The company is slated to reveal its earnings on March 12, 2026. The company's earnings per share (EPS) are projected to be $7.93, reflecting a 6.26% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.83 billion, indicating a 9.89% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $25.61 per share and a revenue of $12.37 billion, signifying shifts of +1.07% and +9.54%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ulta Beauty. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Ulta Beauty is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Ulta Beauty currently has a Forward P/E ratio of 23.57. This indicates a premium in contrast to its industry's Forward P/E of 17.57.

Investors should also note that ULTA has a PEG ratio of 3.12 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Miscellaneous industry held an average PEG ratio of 2.78.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 38% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.