Ulta Beauty Gains 1.43% as $350M Volume Ranks 316th Amid Challenging Retail Sector Pressures

Ulta Beauty (ULTA) rose 1.43% on August 4, 2025, with a trading volume of $0.35 billion, ranking 316th among stocks that day. The stock outperformed its sector but lagged behind broader market indices, which saw gains of 1.34% to 1.95%. Analysts highlighted mixed expectations for Ulta’s upcoming earnings, with projected earnings per share (EPS) of $4.92, a 7.17% decline year-over-year, and revenue forecasted at $2.6 billion, up 1.7% from the prior year. Full-year consensus estimates point to $23.48 EPS and $11.64 billion in revenue, reflecting -7.34% and +3.04% changes, respectively.

Ulta’s Zacks Rank remains at #3 (Hold), with recent analyst revisions slightly adjusting EPS forecasts upward by 0.15% over 30 days. Valuation metrics show a forward P/E of 21.63, exceeding its industry average of 14.38, and a PEG ratio of 3.07, higher than the 2.95 industry benchmark. These metrics suggest investors are paying a premium for growth expectations, despite a 6.27% monthly gain for Ulta compared to the Retail-Wholesale sector’s 1.38% loss.

Industry dynamics remain challenging, with Ulta’s sector ranked 163rd out of 250+ industries by Zacks. The Retail - Miscellaneous industry’s weak performance underscores broader retail sector pressures, though Ulta’s recent price action indicates resilience. Analysts note that estimate revisions correlate with short-term stock performance, with Zacks Rank #1 stocks historically delivering +25% annual returns since 1988.

A strategy of purchasing top 500 high-volume stocks daily and holding for one day returned 166.71% from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the impact of liquidity concentration in volatile markets, where high-volume stocks like Ulta may experience amplified price movements due to institutional and algorithmic trading activity.