Elite Stocks

[gfp927z]

>>> Berkshire likes Ulta Beauty

https://finance.yahoo.com/news/warren-buffett-buys-beautifully-cheap-123300605.html

One of the more interesting of Buffett’s second-quarter moves was the purchase of 690,000 shares of Ulta Beauty (ULTA) , worth $266 million at the quarter’s end.

Ulta is the country’s largest specialized beauty retailer.

The stock traded at $366 on June 15, up 11% from a day earlier on the Buffett news. It’s still down 25% year to date amid strong competition.

TheStreet Pro columnist Paul Price is another Ulta bull.

The veteran investor, who worked at Merrill Lynch and Wells Fargo, recommended the stock in a column the day before news of Berkshire’s purchase.

Ulta’s 234% shareholder return over the past 10 years represents a 57% discount to its cumulative earnings-per-share growth, he said.

So Ulta’s forward price-earnings ratio stands at 12.4 versus a 10-year average of 25.2.

“That means you can now own this top-quality, proven grower at much less than the market multiple of far inferior companies,” Price said.

Two analysts bullish on Ulta Beauty

Oppenheimer analyst Rupesh Parikh also is an Ulta enthusiast. He was impressed with Buffett’s move and the market’s reaction to it.

“The firm views this development as a vote of confidence for the company’s longer-term prospects and a further validation of Ulta’s significantly discounted valuation,” he wrote in a commentary cited by The Fly.

Parikh rates Ulta as outperform, with a price target of $450.

<<<



---