Reasons to Consider Sally Beauty (SBH) as a Strong Momentum Stock Investment
Momentum Investing Overview: Momentum investing involves buying stocks that are trending upwards, with the expectation that they will continue to rise. Investors often face challenges in identifying the best metrics to gauge momentum.
Sally Beauty's Performance: Sally Beauty (SBH) has a Momentum Style Score of B and a Zacks Rank of #2 (Buy), with shares increasing by 10.63% over the past quarter and 16.58% over the last year, outperforming the S&P 500.
Earnings Estimate Revisions: Recent trends show that SBH has had three upward earnings estimate revisions in the last two months, boosting its consensus estimate from $2.00 to $2.06, indicating positive momentum.
Investment Recommendations: Zacks Investment Research highlights SBH as a promising stock for near-term gains and suggests that investors keep it on their radar, alongside other top stock picks with high growth potential.
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Sally Beauty Launches Innovative Hair Care Line
- Product Innovation: Sally Beauty introduces the ion® 24K collection to address the concerns of 40% of U.S. consumers regarding hair damage, utilizing TRICHOPOWER™ SCIENCE technology to reverse damage in just three minutes, significantly enhancing consumer experience.
- Effective Hair Care: The Rapid Recovery Peptide Leave-In Hair Treatment can reverse hair damage in three minutes while maintaining up to 87% of hair's natural foundation, helping consumers save over 60% compared to leading competitors, showcasing a clear price advantage.
- Multi-Functional Products: The Metal & Mineral Neutralizing Spray ensures even color absorption when used as a pre-treatment, while the pH Perfector Purifying Shampoo balances hair pH during cleansing, enhancing hair health and resilience, thus meeting consumer demand for high-performance hair care products.
- Market Expansion: Sally Beauty plans to unveil a new collection of ion® tools in spring 2026, further enriching its product line and promising smoother, shinier hair, reflecting the company's ongoing commitment to meeting modern consumer needs.

Ulta Beauty (ULTA) and Sally Beauty (SBH) Upgraded Amid Growth Expectations for 2026
- Market Challenges and Opportunities: The beauty, personal care, and household products sector faces slowing global consumption and structural tariff pressures in 2026, yet restructuring initiatives launched in 2025 are expected to yield positive impacts, helping companies navigate market challenges.
- Rating Upgrades: Raymond James analyst Olivia Tong upgraded Ulta Beauty (ULTA) from Outperform to Strong Buy, anticipating outsized growth in 2026, reflecting the company's success in attracting younger consumers and its effective loyalty programs.
- Sally Beauty's Growth Potential: Tong raised Sally Beauty Holdings (SBH) from Market Perform to Outperform, believing that the 'Sally Ignited' store refresh and partnerships with DoorDash and Uber Eats will enhance customer convenience and drive sales growth.
- Price Target Increases: Tong raised Ulta's price target by 31% to $790 and set a $19 target for Sally Beauty, reflecting optimism about both companies' future growth potential, contributing to their stock prices reaching multi-year highs.









