1 Growth Stock Down 28% to Buy Right Now

ULTA Beauty (NASDAQ. ULTA) It could have used its shares from its makeup to its makeup by about 28% above their 52 weeks. However, investors focus too much on the performance of the company’s rude stock exchange in 2024 may decrease a larger picture.

This cosmetics retailer and the operator of the hall remain a glamorous growth fund, which was well positioned for perceiving 2025 to provide several strategic initiatives to provide a more positive world. Here’s why it can be a great time to buy the final beauty shares.

For 35 years, Ulta Beauty has a pioneer retail innovation through one stop shop, offering customers a comfortable destination Cosmetics:Perfume, skin care and hair care products in the store services.

The model proved that it is very successful, which now operates in 1,437 stores in the United States. It managed to capitalize during the boom of the consumer spending of the epidemiological expenditure, 66% increasing 66%, while accelerating its new stores.

But in 2024, a wider beauty category encountered a more difficult landscape. The accumulative effects of inflation and raised interest rates have created headscarves for discretionary expenses, which leads to a softer sales and earnings, final.

In the third quarter (ended on November 2), the sale of the store has increased by only 0.6% compared to the previous year, by 4.5% last year. During the first nine months of the year, the earnings of each share (EPS) dropped by 5.9% to $ 16.93, reflecting light compressed margins.

Despite the figures of these silent title, the management claims that the latest deceleration is temporary, citing early indicators that make up its improvement initiatives. The latest update highlighted the fourth quarter “The expected efficiency during the holiday season”, where the company now leads to modest growth.

The beauty and personal care market, which is estimated at about $ 80 billion in 2021, is scheduled to reach $ 100 billion until 2023, and to strengthen the final share. Several topics, including population aging population, skin care demand and cohort Gen z Consumers are more ready to make more regular purchases. Are the worldly tail for the company.

In January, it was announced by CEO Dave Kimbel’s retirement, replaced by Kepia steel, his former CEO, more than a decade of the company. Steelman is recognized as an instrumental role in developing a recently updated strategic framework for the ultimate beauty. As a leader of the new company, he must have more control to see that vision.

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The initiatives are promising. Management plans to expand a health category that is a market that has more potential and faster growth than traditional cosmetics.

The company also strengthens its digital strategy, which is a network of its large-scale store, which implements its implementation with more than 44 million loyalty members. And this is pursuing an international expansion in 2025 with the programs to enter Mexican market.

In general, the company is well located for 2025, especially with the resistant economy and improves the consumer’s trust.

Perhaps the most active cause of taking into account the shares is an attractive assessment of it. Assuming that the company can return to a stronger rise on the track, the shares are underestimated 17 times in front of the EPS of their consent, against their five-year medium multiple.

The Bullish Thesis for the Fund is that the new year improved quarterly results can be catalyst to maintain the rally.

What makes the ultimate convincing, as the contribution is a beneficial combination for the significant potential of the benefit, industry leadership and long-term growth. For investors who want to consider the last recent hats, the final beauty shares can make a great addition to a diversified portfolio. I predict that 2025 will be a great year for the company, with a good opportunity, the shares will be higher this time.

Before you buy a stock at Ulta Beauty, consider this.

Is MOTLEY FOOL STOCK ADVISOR Analyst team just found out what they believe 10 Best Shares: To buy for investors now … and the beauty is not of them. The 10 shares performing the cut can return to the monster in the coming years.

Consider when Nvidia This list did on April 15, 2005 … If you have invested $ 1,000 at the time of our proposal, You will have $ 735,852! *

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* Stock consultant returns as of 27 January 2025

And Victor does not have any of the specified shares. Motley Fool has positions and offers Ulta beauty. Motley Fool has Discovery Policy:A number

1 growth is 28% down right now originally published by Motley Fool