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In my initial write-up on Ulta Beauty (NASDAQ:ULTA), I said I preferred other beauty names and would not be a new buyer at current levels. With the stock down -20% since then, let’s take a closer look at the company and its
Ulta Beauty: Valuation Becoming More Attractive
Summary
- Ulta Beauty reported mixed Q1 earnings and guidance, as consumers bought fewer items per transaction and promotional activity began to pick-up.
- The company's valuation has decreased but still remains one of the highest among retailers, with some headwinds appearing in the market.
- I maintain a "Hold" rating for ULTA stock, recommending long-term investors to take a starter position but remain cautious.
Former Senior Equity Analyst at $600M long-short hedge fund Raging Capital.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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