Keep an eye on Ulta Beauty (ULTA).

Last week, the company reported EPS of $6.02 on revenue of $2.53 billion, which was better than expectations for $5.85 a share on revenue of $2.5 billion. 

“The beauty category has continued to deliver healthy growth, as consumers maintain their post-pandemic routines and expand their definition of beauty,” Chief Executive Dave Kimbell said in the earnings release.

Time is a key factor in grabbing rich options. Click here to see how to stretch it to your advantage.

ULTA also raised its full-year outlook, and said it now expects to see revenue of between $11.1 billion and $11.2 billion, up from previous guidance of $11 billion to $11.1 billion. Earnings for the year are now expected at between $25.10 to $25.60 a share, which is above prior estimates of $24.70 to $25.40 a share, as noted by Barron’s.

Yet, the ULTA stock plummeted to $410.84, where it appears to have found double-bottom support.  Plus, it’s now over-extended on RSI, MACD, and Williams’ %R.  While it’s an expensive stock at $410, we believe it could return a few dollars on the upside.

Sincerely,

Ian Cooper