Ultra Beauty a stock to watch
ULTA stock is a stock to buy as it offers positive risk and reward.
On the reward, if they execute on their earnings per share growth expectations of 12%, where half of that can be thanks for 1 billion in stock buybacks per year, the stock could easily double.
On the risk side, the expectations might not be met, but it is questionable how ugly it can look as the cash flows are there and the business continues to be very profitable, even the new stores.
Competitor: Sephora, Walmart, Amazon…..
Anyway, buying ULTA stock now also gives you a lower price than what Warren Buffett paid this summer.
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