Name of opportunity: 👀
ULTA Salon, Cosmetics & Fragrance, Inc.
Seal of approval from the Oracle of Omaha: 👍
Ulta Beauty Inc has fallen 31.95% in the last 6 months, but Warren Buffett, one of the most celebrated investors of all time, has just bought a position in the company through his investment company Berkshire Hathaway. The 690,106 shares were worth about $227 million according to Wednesday's closing prices.
This is an indication that he sees a great deal of potential in the beauty chain, as famously, Buffett’s strategy is to buy a company he believes in and then hold onto the stock long term. Warren Buffett is not one for flipping stocks to turn a fast profit. He will have looked at Ulta on a holistic level in his decision making process - who are the company’s leaders? What has the company’s performance been like previously and how might it be expected to perform in the future?
How hot is this investment opportunity? 🔥🔥🔥🔥
As mentioned, Ulta has fallen significantly in value, and it now costs only $361.28, compared to highs of $566.11 6 months ago. Analysts predict that it will recover that value over the next 12 months. They think the price of Ulta Beauty Inc will increase from $361.28 to $478.64 in the next 12 months. If you invested $1000, you might profit $454.60.
In their quarterly report at the end of May this year, Ulta Beauty shared net sales growth of 3.5% compared to the year prior. It’s likely part of the reason for the recent fall in the value of the company’s stock is that this report also included a slight fall in gross profit year over year - from 40% down to 39.2%.
However, Warren Buffett clearly sees potential in Ulta Beauty - and analysts seem to agree with him that it will get through this slightly difficult period on top. Consumer spending in the US has been down across many sectors and industries for some time due to inflation. ULTA Salon, Cosmetics & Fragrance, Inc is currently rated as a 'Buy' on Nemo, consolidating analyst's opinions.
Looking gorgeous:💄
Ulta Beauty, Inc. (Ulta Beauty) is a US beauty retailer. The company operates specialty retail stores, which are engaged in selling cosmetics, fragrance, haircare and skincare products, and related accessories and services. The stores also feature full-service salons. Its stores, e-commerce Website, and mobile applications offer approximately 25,000 products across various categories and price points. Its products fit into six categories: cosmetics; haircare products and styling tools; skincare; fragrance and bath; services; and accessories and other. The company operates approximately 1,343 stores across 50 US states.
Which neme?: 🔍
‘Top Gainers Today’ and ‘Stocks on the Move’ - and soon you should also find it in ‘Copy Warren Buffett’!
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