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

After the accumulation, an upward acceleration ?

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Anas Lozach
Analyst

Strategy published on : 04/19/2017 | 14:44

long trade on a pullback
Stop-loss triggered

Entry price : 280$
Target : 288$
Stop-loss : 277$
Cancellation Level : 285$
Potential : 2.86%

Ulta Beauty Inc shares stand out with an interesting technical chart pattern displaying horizontal consolidation. One would assume that the current accumulation phase will cede eventually to an acceleration to the upside.
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

● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.

● 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.

● Sales forecast by analysts have been recently revised upwards.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The tendency within the weekly time frame is positive above the technical support level at 251.14 USD


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at USD 288.81.

● The stock is close to a major daily resistance at USD 288.81, which should be gotten rid of so as to gain new appreciation potential.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 35.06 times its estimated earnings per share for the ongoing year.

Zonebourse.com 2017
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