If You'd Invested $5,000 in Ulta Beauty Stock 5 Years Ago, Here's How Much You'd Have Today

Five years ago, Ulta Beauty was a well-known name in the beauty retail industry, but it wasn't the powerhouse it is today. If you had invested $5,000 in Ulta Beauty stock back then, you'd be pleasantly surprised to see how much your investment has grown. Let's take a look at the journey Ulta Beauty has taken and how your investment would have fared.

In 2017, Ulta Beauty's annual revenue was $4.855 billion, and its stock price was around $200. Fast forward to 2024, Ulta Beauty's annual revenue has grown to $11.207 billion, representing a compound annual growth rate (CAGR) of approximately 15.5%. During this period, Ulta Beauty's stock price has also appreciated significantly, with the latest closing stock price on May 21, 2024, being $381.83. This means that if you had invested $5,000 in Ulta Beauty stock five years ago, your investment would have grown to around $14,473, assuming you reinvested all dividends.



Ulta Beauty's impressive growth can be attributed to several factors, including its strong revenue growth, expansion, e-commerce growth, and strong brand recognition. The company has expanded its store presence significantly, growing from around 1,200 stores in 2019 to over 1,380 stores by 2024. This expansion has allowed Ulta Beauty to reach more customers and increase its market share. Additionally, Ulta Beauty's online presence and e-commerce sales have grown significantly, with online net sales amounting to about $2.1 billion in 2022. This growth has been driven by increased consumer demand for online shopping and Ulta Beauty's strong online presence.

Ulta Beauty's pricing strategy and product offerings have also played a crucial role in driving its sales and stock performance. The company offers a wide range of products from various brands, catering to different price points and customer preferences. This diverse product portfolio has helped Ulta Beauty attract a broad customer base, contributing to its steady sales growth over the years.

While Ulta Beauty's stock has experienced significant appreciation over the past five years, it's important to note that the company's stock price has been volatile in recent months. The broader market sentiment has played a role in Ulta Beauty's stock performance, with investors pulling back from riskier assets like consumer discretionary stocks. This market sentiment has contributed to the stock's recent slump.



Despite the recent slump, Ulta Beauty's stock trades at a lower price-to-earnings (P/E) ratio of 17 compared to the S&P 500's P/E multiple of 30. This lower P/E ratio indicates that the company's stock is relatively undervalued, which could be an attractive opportunity for long-term investors.

In conclusion, if you had invested $5,000 in Ulta Beauty stock five years ago, your investment would have grown to around $14,473, assuming you reinvested all dividends. Ulta Beauty's impressive growth can be attributed to its strong revenue growth, expansion, e-commerce growth, and strong brand recognition. The company's pricing strategy and product offerings have also played a crucial role in driving its sales and stock performance. While the company's stock price has been volatile in recent months, its relatively undervalued status makes it an attractive opportunity for long-term investors.