Ulta Beauty Stock Upgraded After Worst Week in 4 Years

ULTA's Wednesday bear gap occurred after warnings of slow demand

Deputy Editor
Apr 8, 2024 at 10:47 AM
facebook X logo linkedin


Fresh off the stock's worst week since March 2020, one analyst is betting on a bounce back from Ulta Beauty Inc (NASDAQ:ULTA). This morning, Loop Capital upgraded the cosmetics retailer to "buy" from "hold," calling last week's selloff 'overdone.' The firm also set a price target of $540, which represents an over 20% premium to current levels. 

At last look, ULTA was up 2.1% to trade at $454.18. The shares fell 15.3% on Wednesday, April 3, after CEO David Kimbell warned of slowing demand. Since the start of the year, the equity is down 7.2%. However, its 14-day relative strength index (RSI) of 20.4 sits firmly in "oversold" territory, which is typically indicative of a short-term bounce looming. 

Should investors also bet on ULTA's next move higher, options look like a good way to go. The stock's Schaeffer's Volatility Index (SVI) of 26% ranks in the low 14th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment. 

It's also worth noting the security's Schaeffer's Volatility Scorecard (SVS) ranks at an elevated 95 out of 100. This means ULTA tends to exceed traders' volatility expectations, a boon for potential premium buyers. 

 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI