Tiger Stocks Highlights – Ulta Beauty. Okta

The US markets welcomed Powell's more dovish signal of slowing the pace of rate hike to 50bps at the next FOMC meeting in December. The Fed will focus on holding rates higher for longer to quell inflation. Inflation while showed signs of coming off the peak is still higher than the Fed’s long run target of 2% and we think the restrictive stance is likely to stay the course. The yield curve continues its inversion trend, with the difference between the longer term 10-year and short term 2-year yields of around 72bps. The $NASDAQ(.IXIC)$  was up +1.7% while $S&P 500(.SPX)$  rose +1.2% during the week.

Inflation in Europe is also starting to decelerate from the record high of 10.6% in October to 10.0% in November. Amid the continued double-digit inflation, the European Central Bank is further looking at potentially starting to unwind its balance sheet through quantitative tightening and is further expected by markets by around 50bps in the upcoming session. European equities continued its recovery momentum rising by +0.6% during the week.

China relaxed several covid-19 rules in parts of Guangzhou which sent optimism to the overall markets. China continues to raise it the booster vaccine administration ratio for the elderly which stand at 69% for those above the age of 60 years old. This is expected to be one of the important datapoint to watch for any chance of full reopening next year. $HSCEI(HSCEI)$  rose sharply by +6.2% during the week on continued market optimism of China’s path towards reopening.

$Ulta Salon Cosmetics & Fragrance(ULTA)$ continue to enjoy tailwinds of a resilient beauty and cosmetics market in an endemic world, as it surpassed market expectation and raised forward guidance. The company saw comparable sales rising by 14.6% while other retailers are struggling. Ulta Beauty enjoyed double-digit solid sales growth across makeup, skincare, hair care, fragrance, and bath categories.

While net income rose by 27.5% yoy on the back on a gross margin of 41.2%. As a result of the strong underlying momentum, the company boosted guidance for the full year for comparable sales growth to 12.6%-13.2% and raising earnings per share to $22.6-$22.9, an 8-9% increase from the prior forecast. Ulta Beauty trades at 21.3x/18.6x price to earnings ratio.

$Okta Inc.(OKTA)$  a leading cloud-based software company that manage secure user authentication and build identity controls for applications; reported solid third-quarter revenue grew by 37% yoy while its current performance obligation grew 34% yoy. This was better than expected despite the challenging macroeconomic landscape and bucking the trend of other software industry players.

On a bright note, the company has been disciplined in controlling its operating costs, Okta expects to reach profitability in FY24, with a low single-digit operating margin. After an almost 70% YTD decline, the company is now trading at 4.9x consensus FY 24 EV/Revenue.

# 💰 Stocks to watch today?(28 Mar)

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  • boonk
    ·2022-12-04
    Best performance last week
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  • GarethTan
    ·2022-12-02
    [Miser] [Miser]
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  • Albert945
    ·2022-12-04
    thanka for sharing
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  • JaydenSee
    ·2022-12-06

    Ok 

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  • tseechu1
    ·2022-12-06
    ok
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  • 你我他YouMeHim
    ·2022-12-06
    k
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  • Birdiebear
    ·2022-12-06
    Hm
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  • lkh0126
    ·2022-12-06
    tq
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  • haircut
    ·2022-12-05
    ok
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  • Joe Lamborgh
    ·2022-12-05
    👍🏻
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  • YCGan
    ·2022-12-05
    Noted
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    ·2022-12-05
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  • thisishanong
    ·2022-12-05
    Hi
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  • 刚人
    ·2022-12-05
    [微笑]
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  • Bulltrader
    ·2022-12-04
    good recommend
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  • keane3921
    ·2022-12-04
    Thks
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  • nautiann
    ·2022-12-04
    ok
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  • Joykong
    ·2022-12-04
    ok
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  • kytphine
    ·2022-12-04
    thx
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  • CheeWee79
    ·2022-12-04
    thanks
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