Ulta Beauty
ULTA
Delayed Nasdaq - 12/11 10:00:00 pm
216.14USD
-3.74%

The beginning of the move

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Anas Lozach
Analyst

Strategy published on : 12/05/2017 | 14:09

long trade
Live

Entry price : 223.77$
Target : 276$
Stop-loss : 202.5$
Potential : 23.34%

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.

Zonebourse.com 2017
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