If I don’t tell you which company it
is and ask you to guess which sector this company belongs to purely based on
its chart below, you probably won’t think about a retail company at all.
Due to
the aggressive expansion of Amazon’s online business and the historical change
of customers’ shopping habits that more and more go online than to physical
stores, most of the retail companies are really struggling to say the least, or
even fighting for survival for many. So when I happen to see the chart of Ulta
Beauty (ULTA), a beauty products
company, I initially thought there might be something wrong with the chart but
then realized this is indeed a long term chart for ULTA.
I’m definitely not an expert on beauty products but based on what I read, Ulta has grown substantially since its debut in 1990 and has become the largest beauty retailer in the US, marketing 20000 products from over 500 beauty brands across all categories. I don’t know how they manage it in the e-commerce world led by Amazon that they can still grow rather fast and different from other retailers which are all in the mood of closing their physical stores, Ulta is still expanding. It is apparently very profitable with a lot of cash without debt. Looking at its 10 year chart, it is virtually a straight line going up with few hiccups. Actually you can guess that Ulta is a rather stable stock compared with others with a beta of less than 0.7, meaning 30% less volatile than S&P as a whole. Now it has just broken out over its all time high around $278, which is technically a good sign that it will continue to go a lot higher. Of course I’m not saying Ulta around $285 is cheap but you rarely get a cheap price for a great stock. Maybe just put Ulta on your radar screen and jump in if someday it gets sold, especially with the overall market selloff. It is definitely a momentum stock that may continue its uptrend for long time!
Due to
the aggressive expansion of Amazon’s online business and the historical change
of customers’ shopping habits that more and more go online than to physical
stores, most of the retail companies are really struggling to say the least, or
even fighting for survival for many. So when I happen to see the chart of Ulta
Beauty (ULTA), a beauty products
company, I initially thought there might be something wrong with the chart but
then realized this is indeed a long term chart for ULTA.I’m definitely not an expert on beauty products but based on what I read, Ulta has grown substantially since its debut in 1990 and has become the largest beauty retailer in the US, marketing 20000 products from over 500 beauty brands across all categories. I don’t know how they manage it in the e-commerce world led by Amazon that they can still grow rather fast and different from other retailers which are all in the mood of closing their physical stores, Ulta is still expanding. It is apparently very profitable with a lot of cash without debt. Looking at its 10 year chart, it is virtually a straight line going up with few hiccups. Actually you can guess that Ulta is a rather stable stock compared with others with a beta of less than 0.7, meaning 30% less volatile than S&P as a whole. Now it has just broken out over its all time high around $278, which is technically a good sign that it will continue to go a lot higher. Of course I’m not saying Ulta around $285 is cheap but you rarely get a cheap price for a great stock. Maybe just put Ulta on your radar screen and jump in if someday it gets sold, especially with the overall market selloff. It is definitely a momentum stock that may continue its uptrend for long time!
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