Back-to-School Stock Pick Bulls Won't Want to Ignore

Ulta stock hit a record peak late last month, following an impressive earnings report

Digital Content Manager
Sep 1, 2021 at 12:45 PM
facebook twitter linkedin

With students heading back to class and the first signs of fall just around the corner, investors might want to start looking at seasonality trends for September. Luckily, Schaeffer's Senior Quantitative Analyst Rocky White has compiled a list of the 25 best performing stocks this month, going back 10 years. One name that stands out is cosmetics retailer Ulta Beauty Inc (NASDAQ:ULTA), which just came off an upbeat earnings report that launched the stock to a record high of $414.98.  

The equity is up an impressive 67% in the last 12 months, though the $390 level has prevented ULTA from snagging any more intraday highs. The 10-day moving average has emerged as a leg of solid support, along with the $380 level. Ulta stock was last seen up 0.2% at $388.24, but based on its aforementioned seasonality, there's reason to believe the stock could snag even more records in the coming weeks. 

ulta chart sept 1

According to White's data, over the past 10 years, ULTA has seen eight positive one-month returns, and averaged a 6.2% pop in this time period. That's good for second best one-month return on the list, following fellow retailer L Brands (LB), which averaged a 7.2% jump in September. A similar move, from ULTA's current perch, would put the stock at $412.31 -- just a chip shot away from last month's post-earnings peak. 

best of september

The security has been the recipient of plenty of bullish attention from analysts during the past week. Just today, Piper Sandler noted an accelerating demand for skincare and services which should continue into the fall. Since its quarterly report, no less than 15 analysts lifted their price targets, though there still looks to be room for analyst upgrades. Of the 20 analysts covering ULTA, nine consider it a tepid "hold." 



Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners