Should you buy Ulta Beauty stock? (January 2024)

Newsletter subs get it first: https://www.3minutebreakdowns.com Ulta stock analysis. Ticker: $ULTA Ulta Beauty is the largest beauty retailer in the US with around 1400 stores. At the current price, the company has a market cap of 23 billion dollars with 122 million of cash on its balance sheet and no debt. Revenue over the last 12 months totals 11 billion, with 1.2 billion of net income and 1.9 billion of ebitda. So Ulta stock is now valued at just over 2 times revenue, and 19 times earnings. That valuation seems reasonable but there are signs that the business is slowing down. Revenue growth should come in at 9% this year which is half last year’s figure and in May the stock dropped 28% after the company posted lower profit margins. Inflation has clearly hurt consumer demand with the average sale per customer dropping by 1.5% in the first quarter. However, it’s worth putting those numbers into perspective. Skin care and beauty products saw huge demand following the pandemic. ULTA grew its revenues 40% in 2022 and 18% in 2023. So some normalization is to be expected. #investing #3mb #stockstobuy #stockstobuynow