Sally Beauty (SBH): Reevaluating Valuation Following Impressive Q4 Earnings and Recent Stock Price Increases
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 07 2025
0mins
Source: Yahoo Finance
Strong Q4 Performance: Sally Beauty Holdings reported adjusted earnings per share of $0.55 and revenue exceeding forecasts, leading to a share price increase of 11.56% over the past month and 46.35% year-to-date.
Fair Value Assessment: The company's fair value is estimated at $16.25, suggesting modest upside potential from the current share price of $15.63, contingent on strategic initiatives like store refreshes and focus on high-growth beauty categories.
Risks to Growth: Persistent consumer frugality and low digital penetration may hinder revenue growth and margin improvements, posing risks to the optimistic narrative surrounding Sally Beauty's future.
Investment Insights: The article encourages investors to explore undervalued stocks and highlights key rewards and warning signs related to Sally Beauty Holdings, emphasizing the importance of thorough research before making investment decisions.
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Analyst Views on SBH
Wall Street analysts forecast SBH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SBH is 15.88 USD with a low forecast of 13.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
1 Hold
1 Sell
Hold
Current: 14.970
Low
13.00
Averages
15.88
High
19.00
Current: 14.970
Low
13.00
Averages
15.88
High
19.00
About SBH
Sally Beauty Holdings, Inc. is an international specialty retailer and distributor of professional beauty supplies. The Company operates in two business segments: Sally Beauty Supply and Beauty Systems Group, which offers beauty products in key categories, including hair care, hair color, styling tools and nails. Sally Beauty Supply is an omni-channel retailer that offers professional beauty supplies and provides education to retail consumers and salon professionals throughout North America, South America and Europe. Sally Beauty Supply stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary brands, such as Ion, Bondbar, Strawberry Leopard, and Generic Value Products. Beauty Systems Group stores, branded as Cosmo Prof or Armstrong McCall stores, along with its outside sales consultants, sell up to 8,000 professionally branded products, including Paul Mitchell, Wella, Matrix, Schwarzkopf, Kenra, Goldwell, Joico, Amika and Moroccanoil.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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.
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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.
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