When considering which names to put on a stock watch list, a good hunting technique is to see if they have an RS rating of 80 or higher. Market research shows that the biggest winners in the market typically have an RS rating of 80 or higher in the early stages of their moves. Ulta Beauty stock just met those criteria with a new score of 81.
senior Ultimate beauty (ULTA) stock is building a consolidation with an entry of 429.58, not far below its all-time high. However, it rose from a low of 124.05 in late March 2020 amid the Covid crash to an all-time intraday high of 438.63 on April 21 of this year. As a sign of strength, it corrected less than most stocks in the first half of 2022 despite the sharp market correction. See if the stock can break out at least 40% above average in volume. As of Tuesday afternoon, Chicago-area beauty products chain Ulta Beauty was trading above 373, down about 1.6% amid a market decline.
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Ulta Beauty stock in the top 9% overall
Ulta Beauty’s earnings soared 54% to $6.28 per share in its most recent earnings report. Revenue rose 21% to $2.35 billion. Look for the next report on or about August 25th.
Among its other key ratings, Ulta Beauty has a nice-looking EPS rating of 90 out of a best possible 99. Similarly, Ulta Beauty’s stock has a composite rating of 91, placing it in the top 9% of any company for earnings growth as of late includes quarters and years. A yellow flag is their D+ Accumulation/Distribution Rating, which shows slightly more selling by funds than buying of its shares. Look for it to level up to C or better.
Ranked #2 in the group
Ulta Beauty stock ranks second among its peers in the specialty retail industry group. Sally beauty (SBH) and National Vision Holdings (EYE) are also among the top-rated stocks in the group. The group is ranked #66 of the industry’s 197 IBD tracks.
When looking for the best stocks to buy and watch, relative price strength is a factor to watch closely.
This proprietary Relative Strength Rating measures market leadership by showing how a stock’s price action compares to the other stocks in our database over the past 52 weeks.
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