Ulta Beauty is tumbling on earnings, but one trader sees strength ahead

Shares plummeted 13% after hours following an earnings and revenue miss. Comparable store sales also came in under expectations.

Shares of Ulta are up more than 37% this year but still down nearly 9% from their 52-week high set in July., CEO of Chantico Global, says that despite increasing pressure on the broader retail space Ulta is best poised to weather the storm from a fundamental perspective. "If you look at the way Ulta has pivoted from just bricks and mortar to more of an online offering, their latest annual report would suggest that's going to continue to drive their growth," she said Thursday on CNBC's ". " "So I think within the retail sector they look fantastic because beauty is very much a recession-proof commodity."

However, Sanchez cautions investors to keep a close eye on Ulta's valuation, which she says has become a bit too lofty. "It's trading at 24 times trailing valuation for price-to-earnings versus its forward PE at 9 times," she explained. "I think that's one of the reasons that it's been struggling at this point, so we have to see how this valuation element shakes out.", president of Blue Line futures, is bullish on a different beauty stock: Estee Lauder. That name has surged more than 56% this year, making it the best-performing beauty stock.

I thought Ulta was a great buy MadMoneyOnCNBC?

ULTA expensive.

One of the shittiest companies to work for.

Massive corporate tax break and still not blowing out numbers. Yep in this dimwit environment that’s a buy so the insiders can sell and leave you holding the bag.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

17 Top-Selling Hair Products Ulta Shoppers Can’t Stop BuyingGet your hair ready for fall with these tools and products from ultabeauty.
Source: StyleCaster - 🏆 104. / 63 Read more »

How the Internet Helped Lizzo Learn to ''Find the Beauty'' In HerselfWhen people look at my body and be like, 'Oh my God, she's so brave,' it's like, 'No I'm not,' the singer recently opened up to Glamour.
Source: enews - 🏆 466. / 52 Read more »

Pregnancy, Parenting, Lifestyle, Beauty: Tips & Advice | mom.com
Source: CafeMom - 🏆 701. / 51 Read more »

Pregnancy, Parenting, Lifestyle, Beauty: Tips & Advice | mom.com
Source: CafeMom - 🏆 701. / 51 Read more »

Pregnancy, Parenting, Lifestyle, Beauty: Tips & Advice | mom.com
Source: CafeMom - 🏆 701. / 51 Read more »

5 Beauty Brands That Are Helping Stop The Amazon Rainforest FiresBeauty brands, many of which use the Amazon's ample resources to source essential ingredients for their products, have begun to use their influence, raising funds for charities and non-profits working to save this area and its massively important ecosystem
Source: Refinery29 - 🏆 26. / 68 Read more »