ULTA Should I Buy
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Ulta Beauty Inc. (ULTA) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has strong analyst support and positive growth trends in revenue, the recent financial performance shows a decline in net income and flat EPS growth. Additionally, technical indicators are mixed, and Congress trading data reflects cautious sentiment. The options data suggests a moderately bullish sentiment, but not strong enough to justify immediate action. Given the user's impatience and unwillingness to wait for optimal entry points, holding off for now is recommended.
The MACD is negative and expanding, indicating bearish momentum. RSI is neutral at 42.822, showing no clear signal. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading near resistance levels (R1: 696.199). Support levels are at 667.22 and 638.242, suggesting limited upside potential in the short term.
Bullish moving averages and solid gross margin improvement (up 1.74% YoY).
Net income declined by 4.67% YoY in Q3 2026, and EPS remained flat. Congress trading data shows two recent sale transactions, indicating cautious sentiment. MACD is negative, and RSI is neutral, showing no strong bullish momentum. Stock trend analysis suggests limited short-term upside.
In Q3 2026, revenue increased by 12.95% YoY to $2.857 billion, gross margin improved to 40.44%, but net income dropped by 4.67% YoY to $230.875 million. EPS remained flat at 5.14 YoY.
Analysts are highly bullish on Ulta, with multiple price target increases (ranging from $680 to $790) and upgrades. Key drivers include strong holiday sales, new product launches, and digital initiatives. However, some analysts note the need for continued investments to combat competitive threats.
