Ulta Beauty (ULTA) closed the most recent trading day at $548.66, moving -2.92% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 0.32%.

The beauty products retailer's stock has climbed by 20.45% in the past month, exceeding the Retail-Wholesale sector's gain of 7.55% and the S&P 500's gain of 3.42%.

Investors will be eagerly watching for the performance of Ulta Beauty in its upcoming earnings disclosure. The company is predicted to post an EPS of $6.16, indicating a 6.57% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.97 billion, up 6.45% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $28.78 per share and revenue of $13.21 billion, indicating changes of +12.25% and +10.28%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Ulta Beauty. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. Ulta Beauty is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Ulta Beauty is presently trading at a Forward P/E ratio of 19.64. This represents a premium compared to its industry average Forward P/E of 16.29.

Investors should also note that ULTA has a PEG ratio of 1.76 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Miscellaneous industry had an average PEG ratio of 1.82 as trading concluded yesterday.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 37% 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.

To follow ULTA in the coming trading sessions, be sure to utilize Zacks.com.

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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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