Ulta Beauty, Inc. : The beginning of the move
Entry price | Target | Stop-loss | Potential |
---|
US$223.77 |
US$276 |
US$202.5 |
+23.34% |
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The recent break-out to the upside has created potential for further gains for shares in Ulta Beauty.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths● Its core activity has a significant growth potential and sales are expected to surge, according to Thomson Reuters' forecast. Indeed, those may increase by 58% by 2020.
● The group's high margin levels account for strong profits.
● The company is in a robust financial situation considering its net cash and margin position.
● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.
● The group usually releases upbeat results with huge surprise rates.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses● With a 2018 P/E ratio at 26.57 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● Below the resistance at 251.05 USD, the stock shows a negative configuration when looking looking at the weekly chart.
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Surperformance is Buy on ULTA BEAUTY, INC. since 22/09/2022
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