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We recently compiled a list of the 10 Stocks That Became Analyst Favorites This Week. In this article, we are going to take a look at where Ulta Beauty Inc. (NASDAQ:ULTA) stands against the other analysts favorites.
US stocks registered a green day on Tuesday with the Dow surging up 538 points to end 1.24% higher. S&P 500 and Nasdaq also posted gains of 0.88% and 0.64% respectively, showcasing the strength of the American economy.
As for individual stocks, analysts continue to evaluate businesses based on any public information they can gather. Some of these insights turn into stock upgrades or downgrades while others reiterate the positive or negative outlook on the stocks. We came up with a similar list of stocks that have received analyst approval this week.
To come up with the list of 10 stocks moving on analyst optimism, we considered stocks with a market cap of at least $10 billion.
A photograph of a customer testing out different products in the skincare aisle at a store.
Ulta Beauty Inc. (NASDAQ:ULTA)
ULTA Beauty Inc. is a retailer specializing in beauty products in the US. The company sells both private-label and branded products in its stores. Despite a disappointing performance in the last year, the stock is up 25% in the last two months, so an analyst upgrade was coming.
Morgan Stanley analysts consider the company to be operating in an attractive category that continues to see healthy spending. Beauty spending is increasingly becoming a non-discretionary expense and people see it as an integral part of their lives. On top of that, the outlook for the beauty industry itself is quite promising in 2025. When one combines this with the 44 million loyalty members that ULTA has and its $500 price target, investors are likely to be attracted to the stock.
Overall ULTA ranks 2nd on our list of the stocks that became analyst favorites this week. While we acknowledge the potential of ULTA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as ULTA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.