Ulta Beauty, Inc. (NASDAQ:ULTA) is one of the Unstoppable Stocks to Buy in 2026.
On May 5, Bank of America upgraded the company’s stock to “Buy” from “Neutral,” with the price target of $685
It noted that the recent decline in the share price resulted in an attractive entry point. The firm believes that the high-quality compounder continues to trade at a discount to its peers. Notably, Ulta Beauty, Inc. (NASDAQ:ULTA)’s stock price declined by more than ~13% on a YTD basis.
The firm’s analyst, Lorraine Hutchinson, highlighted that the company’s investment cycle has been developing long-term competitive advantages. Notably, the firm believes that improvement in cost discipline is expected to drive operating income growth and healthier FCF. Ulta Beauty, Inc. (NASDAQ:ULTA) provided FY 2026 guidance, where it expects net sales growth of 6.0% – 7.0% and diluted EPS growth of 9.4% – 11.4%.