Is ULTA a good stock to buy?
We came across a bullish thesis on Ulta Beauty, Inc. on r/ValueInvesting by raytoei
In this article, we will summarize the bulls’ thesis on ULTA. Ulta Beauty, Inc.’s share was trading at $456.13 as of June 18th. ULTA’s trailing and forward P/E were 17.10 and 16.26 respectively according to Yahoo Finance.
Africa Studio/ Ulta Beauty operates as a leading US specialty beauty retailer positioned between mass and prestige cosmetics, competing with Walmart, Amazon, and Sephora while leveraging an omnichannel store base. The company historically delivered strong consistency in earnings growth pre-Covid, with significant expansion in margins and returns driven by its differentiated store experience and loyalty ecosystem. 15 AI Stocks That Are Quietly Making Investors Rich Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential Post-Covid, intensifying competition from Sephora, including store-in-store expansion through Kohl’s, pressured same-store sales and led to market skepticism despite continued underlying demand for beauty products. Despite this, Ulta remains structurally profitable, supported by 40% plus gross margins, mid-teens operating margins, and return on invested capital exceeding 20%, well above its cost of capital.