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Ulta Beauty Shares Rally on Heavy Demand and Strong Fundamentals

By:
Lucas Downey
Published: Mar 31, 2023, 13:47 GMT+00:00

Ulta Beauty (ULTA) has been a bright spot in the market lately. Shares have popped 14% in 2023.

Nasdaq, FX Empire

In this article:

One big reason for the stock’s rise is heavy demand for the shares.

Ulta Beauty Shares Attract Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next up-trending stock. And ULTA has many fundamental qualities that are attractive.

But how the shares have been trading points to strong investor appetite. As I’ll show you, the Big Money has been consistent in the shares for years.

Each blue bar signals big bullish inflows while the stock was top-ranked according to MAPsignals:

Source: www.mapsignals.com

Since 2015, the shares made our top 20 list a massive 31 times. Demand for the stock has been high. Those repeated blue bars could mean more upside is ahead.

Now, let’s check out the fundamental action grabbing my attention:

Ulta Beauty Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is supportive too. As you can see, ULTA grew sales and EPS on a 3-year basis. Take a look:

  • 3-year sales growth rate (+13.9%)
  • 3-year EPS growth rate (+146.3%)

Source: FactSet

Marrying strong fundamentals with technically superior stocks is a winning recipe over the long-term.

Ulta has been a top-rated stock multiple times at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

Let’s wrap up.

Ulta Beauty Price Prediction

The Ulta Beauty rally could have further to go. Healthy buying in the shares is signaling to take notice. Shares could be positioned for further upside.

Please note, shares could be extended at these levels given the large accumulation signals.

Disclosure: the author holds a long position in ULTA in personal accounts at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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