In the latest trading session, Ulta Beauty (ULTA) closed at $377.74, marking a -0.25% move from the previous day. This change lagged the S&P 500's 1.67% gain on the day. Elsewhere, the Dow saw an upswing of 1.07%, while the tech-heavy Nasdaq appreciated by 2.5%.

Coming into today, shares of the beauty products retailer had gained 2.14% in the past month. In that same time, the Retail-Wholesale sector lost 4.21%, while the S&P 500 lost 6.57%.

The upcoming earnings release of Ulta Beauty will be of great interest to investors. The company's earnings report is expected on May 29, 2025. The company is forecasted to report an EPS of $5.73, showcasing a 11.44% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.79 billion, showing a 2.21% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $23.02 per share and a revenue of $11.58 billion, representing changes of -9.16% and +2.49%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Ulta Beauty. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Ulta Beauty currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Ulta Beauty is at present trading with a Forward P/E ratio of 16.45. For comparison, its industry has an average Forward P/E of 13.35, which means Ulta Beauty is trading at a premium to the group.

It's also important to note that ULTA currently trades at a PEG ratio of 2.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Miscellaneous industry currently had an average PEG ratio of 1.4 as of yesterday's close.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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