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 focus. While the company has strong analyst support and a history of growth, the current technical indicators, recent congress trading activity, and mixed financial performance suggest caution. Holding the stock or waiting for a clearer entry point is recommended.
The MACD is negatively expanding at -6.122, indicating bearish momentum. RSI is at 24.88, in the neutral zone but leaning towards oversold territory. Moving averages are converging, showing no clear trend. The stock is trading near its S1 support level of 646.077, with resistance at 670.949. Overall, the technical indicators suggest a bearish or neutral trend.
Analysts have raised price targets significantly, with most maintaining Buy or Overweight ratings.
The company is expected to benefit from strong beauty trends and new product launches, such as Rare Beauty.
Revenue growth of 12.95% YoY in Q3 2026 indicates strong top-line performance.
Congress members have sold ULTA stock in the last 90 days, indicating caution.
Net income dropped by 4.67% YoY in Q3 2026, showing pressure on profitability.
The MACD and RSI indicate bearish momentum, and the stock is trading near support levels.
The upcoming earnings report on March 12, 2026, adds uncertainty.
In Q3 2026, revenue increased by 12.95% YoY to $2.86 billion, showing strong growth. However, net income dropped by 4.67% YoY to $230.88 million, indicating margin pressures. EPS remained flat at 5.14, while gross margin improved slightly to 40.44%.
Analysts are bullish on ULTA, with multiple firms raising price targets recently. The average price target is around $750-$800, reflecting strong confidence in the company's growth potential. However, JPMorgan removed ULTA from its Analyst Focus List due to conservative guidance for 2026.
