Categories: Invest

Ulta Beauty stock price prediction ahead of Q2 earnings

The Ulta Beauty (NASDAQ: ULTA) stock price is hovering near its all-time high as the beauty industry rebounds and as the market waits for the latest quarterly results. The stock is trading at $373, bringing its total market capitalization to more than $20 billion.

Ulta Beauty earnings preview

Ulta Beauty is one of the biggest fragrance, cosmetics, skincare, and beauty products retailers in the United States. The company operates more than 1,200 stores in its key markets like the US and UK.


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It sells more than 2,500 products. The firm also has a large e-commerce operator, with its website and apps attracting millions of users every year.

The Ulta Beauty stock price has been in a strong bullish trend since the pandemic started. Initially, the shares declined to a multi-year low of $124. It then rallied by more than 200% and pushed its market value to more than $20 billion.

The Ulta stock will be in focus as the company publishes its quarterly results. In general, analysts expect that the firm had a strong quarter as governments ended lockdowns. As a result, the firm likely saw an uptick in demand. 

Analysts expect that the company’s sales rose to more than $1.72 billion in the second quarter. This will be a significant jump considering that its sales tumbled to $1.2 billion in the same quarter in 2020. In total, the firm’s revenue declined to $6.12 billion in 2020 from the previous year’s $7.3 billion.

In addition to the actual results, analysts will watch out for the company’s cost structure considering that import prices have risen. Also, retailers are still struggling to find workers. Also, the Ulta stock will react to the firm’s forward guidance.

Analysts are generally upbeat about Ulta. For example, those at Deutsche Bank, Cowen, Piper Sandler, and Stifel expect it to rise to more than $385.

Ulta Beauty stock price forecast

The daily chart shows that the Ulta stock price has been on a bullish trend. Recently, though, this bullish trend has slowed down. The shares remain above the 25-day and 50-day moving averages while the MACD is above the neutral level.

At the same time, the shares seem to be forming a rising wedge pattern, which is usually a bearish sign. Therefore, the stock will likely pullback after the latest earnings report. If this happens, the key point to watch will be at $350.

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