En.wtf – What to Make of Ulta Beauty Stock After the Target Link Up. Ulta Beauty, Inc. (NASDAQ:ULTA) is the largest beauty chain within the US. the corporate sells cosmetics, fragrances, skincare products, hair care products, and salon services across its 1,196 stores altogether in 50 states. Ulta Beauty was one of the primary major brick-and-mortar businesses to shut its store locations as a result of the coronavirus pandemic and, consequently, took some incredible losses earlier this year. Fast forward to November and therefore the company continues to seem toward a full recovery with the announcement of a replacement partnership with Target (TGT).
So far this year, Ulta Beauty stock held onto its 10% year-to-date level. The shares have quite doubled off their five-year peak-pandemic lows, with a floor emerging at the round $200 level. After bouncing from this level earlier within the month after the Target news, ULTA’s ascending 10-day moving average has guided the stock higher.
Ulta Beauty is about to report earnings on December 3, 2020, after the close. within the company’s past four earnings reports over the past 12 months, Ulta Beauty has beat expectations 3 times. within the fourth quarter of 2019, Ulta Beauty beat expectations by $0.12. within the half-moon of 2020, the corporate beat expectations by a margin of $0.16. The earnings target miss occurred when the corporate saw a drastic decline within the second quarter of 2020, coinciding with the shutdowns surrounding the pandemic. In Ulta Beauty’s most up-to-date quarter, the corporate beat its earnings target by $0.67 (+1117%). For its upcoming income statement, the corporate is predicted to report an EPS of $1.44 on Ulta Beauty stock.
Prior to the pandemic, Ulta Beauty managed to string together quite a few years of consistent net and revenue growth. the corporate demonstrated steady growth between 2016 and 2020. However, the pandemic put a short-lived yet severe dent within the company’s net income streak. Nonetheless, Ulta Beauty has begun to recover since its reported net losses within the second quarter of 2020. the corporate has shown initiative to not only to recover post-pandemic but to push its revenue growth to new highs with the Target deal and Kylie Jenner partnership as two prime examples.
ULTA currently trades at a high price-earnings ratio of 56.43. However, Ulta Beauty stock also has a forward price-earnings ratio of 21.79, which is far brighter for potential investors. the corporate has a mean record of $1.16 billion in cash and $2.76 billion in total debt. Overall, Ulta Beauty seems to be shaping up to be an unexpected growth play. the corporate already controls an honest portion of the sector’s market share but could see further expansion with this new Target partnership.