Key Points
Ulta Beauty, Inc. (ULTA) delivered a powerful session, with shares climbing from a previous close of $533.95 to $594.50 by the end of trade. The move represents a robust single-day gain of 11.34%, advancing $60.55 and signaling strong, broad-based demand from investors. Trading activity was lively and constructive, with volume running ahead of trend and reinforcing the quality of the rally. The surge places the stock at its 52‑week high of $572.23, a level that often acts as a magnet for momentum-driven flows and can encourage incremental participation from trend followers.
Buyers were firmly in control throughout the day, as ULTA pushed higher with limited retracement. The price action reflects renewed confidence in the company’s outlook and a willingness among investors to recalibrate expectations upward. The fact that the advance occurred on volume that exceeded the typical 90-day average adds credibility to the move, suggesting this was not a thinly traded spike but a decisive re-rating bid.
From a technical perspective, moves into 52-week-high territory are notable because they clear prior supply zones and can open the door to continued discovery on the upside. Today’s action underscores improving sentiment around the business and its earnings power. With the stock exhibiting constructive breadth and accumulation, the near-term trend points higher, and the momentum profile appears favorable. While markets are never linear, ULTA’s strong session demonstrates resilient buyer interest and positions the shares on an upward trajectory supported by both price and volume dynamics.
Why Ulta Beauty, Inc. Price is Moving Higher
Ulta’s rally to $594.50 comes on the heels of a standout Q3 fiscal 2025 earnings report and a raised full-year outlook that exceeded investor expectations. The company posted Q3 EPS of $5.14, topping the $4.56 consensus, while revenue advanced 12.9% year over year to $2.86 billion, ahead of the $2.72 billion estimate. Management lifted its full-year sales target to about $12.3 billion and increased comparable sales growth guidance to 4.4%–4.7%. It also boosted its profit outlook to $25.20–$25.50 per share, citing lower e-commerce shipping costs, reduced inventory shrink, and disciplined execution. These results and revisions signaled better-than-expected demand and efficiency, catalyzing a bullish repricing.
Trading dynamics reinforced the fundamental story. Volume reached 712,809 shares against a 90-day average of 650,480, indicating investor enthusiasm and high-conviction buying. With a market cap of $23.94 billion and trailing twelve-month EPS of $26.09, the company’s earnings power is resonating with the market. The stock is trading at a 52-week high of $572.23, an area often associated with technical breakouts and continued momentum as prior resistance converts into support.
Beyond the headline beat, Ulta’s buyback program—roughly 1.7 million shares repurchased year to date with nearly $2 billion of authorization remaining—provides an added tailwind to per-share metrics. Entering the critical holiday period, commentary around consumers seeking value and beauty’s resilient demand backdrop further bolstered sentiment. The combination of an earnings beat, raised guidance, improving margins, and sustained capital returns offers investors a compelling narrative. That alignment between fundamentals and technicals explains the sharp, broad-based advance and suggests the upside move is supported by more than just a one-day headline.
What is the Ulta Beauty, Inc. Rating - Should I Buy?
Weiss Ratings assigns ULTA a C rating. Current recommendation is Hold.
The rating is built on five indices: the Fair Growth Index (measures revenue and earnings expansion) indicates steady but not breakout growth; the Excellent Efficiency Index (measures operational effectiveness and profit margins) reflects strong profitability and disciplined cost control; the Excellent Solvency Index (measures financial health and debt management) highlights a solid balance sheet and strong liquidity; the Fair Total Return Index (measures stock price appreciation plus dividends) signals average risk-adjusted performance over multiple horizons; and the Weak Volatility Index (measures price stability and risk) points to above-average price swings that can amplify downside risk.
Supporting metrics align with this mix. Revenue growth of 9.26% and a profit margin of 10.30% speak to healthy but moderated expansion, while a 48.52% ROE underscores efficient capital deployment. A 20.47 P/E ratio places valuation in a reasonable range relative to earnings power, though volatility tempers the risk/reward profile and keeps the overall assessment balanced at Hold.
Peer context helps frame expectations. Sector peers include AMZN (B), TSLA (C), and HD (C). ULTA’s profitability and solvency compare favorably, yet its total return profile and volatility keep it aligned more closely with C-rated peers than with higher-rated leaders. The relative positioning suggests competitive strengths but also exposure to cycles and sentiment.
Bottom line: Strong efficiency and solvency elevate quality, while fair growth and total return, combined with weaker volatility dynamics, balance the equation. The result is a C (Hold) that acknowledges operational strengths but maintains a measured stance on risk-adjusted performance.
About Ulta Beauty, Inc.
Ulta Beauty, Inc. operates a leading beauty retail platform in the Consumer Discretionary sector, serving the Consumer Discretionary Distribution and Retail industry. The company offers a comprehensive assortment across prestige, mass, and salon-quality categories, including cosmetics, skincare, haircare, fragrance, bath and body, and beauty accessories. Its stores feature full-service salons that provide hair, skin, brow, and makeup services, creating an experiential environment that complements product sales and deepens customer engagement.
Ulta’s model is omnichannel by design. Customers can shop in stores, online, and through a mobile app, with flexible fulfillment options such as buy-online-pickup-in-store, curbside pickup, and same-day delivery in many markets. The company’s merchandising strategy spans thousands of SKUs from established global brands to emerging indie labels, alongside private-label offerings under the Ulta Beauty Collection. This breadth allows Ulta to appeal to a wide range of price points and preferences, reinforcing its position as a one-stop destination for beauty.
A core competitive advantage is Ulta’s loyalty ecosystem. The Ultamate Rewards program enables personalized promotions and points-based incentives that drive repeat purchases and higher basket sizes. Data-driven marketing, category expansion, and curated brand launches help keep the assortment fresh and relevant. Behind the scenes, the company supports operations with a national store footprint and distribution capabilities designed to improve availability and speed. By integrating services, products, and loyalty, Ulta has built a defensible platform with strong customer relationships and a differentiated value proposition in U.S. beauty retail.
Investor Outlook
Ulta’s strong earnings momentum and improved guidance underpin a constructive near-term setup, while the C (Hold) rating reflects a balanced, risk-aware stance. Continued execution on margins, demand capture during peak seasons, and buybacks can sustain investor interest.
See full rankings of all C-rated Consumer Discretionary stocks inside the Weiss Stock Screener.