🎁$ULTA Retailer Stood on 50DMA, Analyst Expects 16.8% UP From Here

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1、$ULTA traded up to the 50 DMA and stopped.

$Ulta Salon Cosmetics & Fragrance(ULTA)$, the largest beauty retailer in the United States rose 3.3% and stood at 50 DMA, as of August 14, its YTD in 2023 is -2.24%, with the market value at $22.8 B.

On monday, retailers such as $Victoria's Secret & Co(VSCO)$, $Abercrombie & Fitch(ANF)$, $Ulta Salon Cosmetics & Fragrance(ULTA)$, and $Etsy(ETSY)$ exhibited positive performances and experienced notable gains.

2. Is $Ulta Salon Cosmetics & Fragrance(ULTA)$ Worthy and Still Cheap?

Earnings and Value Perspective

• In Q123, $Ulta Salon Cosmetics & Fragrance(ULTA)$’s brands such as The Ordinary, Dior Beauty, Bubble Skin Care, Hero Cosmetics, Fenty, and Valentino Fragrances were highlighted in all categories.

• The company reported strong results despite concerns about theft and consumers' tighter wallets. $Ulta Salon Cosmetics & Fragrance(ULTA)$ 's net sales rose 12.3% year-over-year to $2.6 billion.

• Analyst from Yahoo Finance pointed that $Ulta Salon Cosmetics & Fragrance(ULTA)$ appears to be fairly priced at around 15% below its intrinsic value.

Targets and Market preference.

• $Ulta Salon(ULTA)$ will release earnings on 8/24, currently the average target price from Tiger Trade is $535.6, a 16.78% up space from the latest close price.

• $Ulta Salon Cosmetics & Fragrance(ULTA)$ have a volume of 6,844 contracts on Monday. This number of contracts equates to approximately 684,400 underlying shares, representing a remarkable 97.1% of the average daily trading volume of 704,655 shares last month on ULTA. Volume was particularly high in the $480 strike price call option, which expires on August 18, 2023.

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3. More Discussion on $Ulta Salon Cosmetics & Fragrance(ULTA)$ ’s Future Trend and Target price

Cited from @oscar100_x: $Ulta Salon Cosmetics & Fragrance(ULTA)$ is currently at 18x Earnings. They can retire 4% of shares per year at this price while they keep growing earnings 5-10%. 18x seems in the low-ish end of the fair price to me given their track record. Thoughts?

@oscar100_x from X

Cited from @ValueStockGeek from X, he pointed that $Ulta Salon(ULTA)$’s18 P/E seems reasonable, and the 14 EV/EBIT is also reasonable.

Some other goodies also includes: 1) Bought back 20% of the stock since 2016 and continuing, 2) Fantastic management like a FCF Machine with 10-Year Median ROIC = 26.7% and 10-Year Revenue CAGR = 16.5%.

@ValueStockGeek from X

Cited from@Banker_L83, Day and swing trader:This still has a move up to the gap at $480 but has struggled to hold.

@Banker_L83 from X

4. Question for Tigers（All valid and top 10 most popular stocks will be rewarded by Tiger Coins)

• Will you take the time to consider the $Ulta Salon Cosmetics & Fragrance(ULTA)$ to your Watch list? Why and What’s your target price?

• Any other stocks are shaping the same gaped upward pattern?

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