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Ulta Beauty (NASDAQ:ULTA) is a North American beauty retailer for cosmetics, skin-care products, fragrance, hair-care products, and salon services. Shares of Ulta Beauty have climbed 35% in 2019 as of close on March 22.
The stock is trading at the higher end of its 52-week range and is nearing an all-time high. Does that mean it is too pricey to touch right now?
The company released its fourth-quarter and full-year results for 2018 on March 15. It posted a great round of earnings as Q4 revenue rose to $2.12 billion and earnings per share increased to $3.61.
Same-store sales reported 9.4% growth compared to 7.9% growth which was projected by analysts. Cosmetics lines from newly-minted billionaire Kylie Jenner and YouTuber James Charles managed to drive sales in the fourth quarter.
Ulta was boosted by holiday demand, and consumers are increasingly under pressure to start the year. In February, U.S. retail sales fell by the most in nine years, which should concern investors as the 10-year U.S. Treasury just set off a recession warning signal. Ulta's volatile 52-week range should concern prospective buyers.
Shares of Ulta had an RSI of 62 as of close on March 22. This puts the stock just outside of overbought territory in late March. There is a lot to like about Ulta's business development over the past year, but investors should await a more attractive entry point before biting today.
Source : https://menafn.com/1098301649/Is-Ulta-Beauty-Stock-Overvalued