Ulta Beauty, Inc. Monthly Stock Report - January 2026

Company Overview

Ulta Beauty, Inc. (NASDAQ: ULTA), headquartered in Bolingbrook, Illinois, is a leading specialty beauty retailer operating not only in the United States but also in Mexico and Kuwait. Founded in 1990, Ulta, previously known as ULTA Salon, Cosmetics & Fragrance, Inc., has made a significant mark within the consumer cyclical sector by offering a vast assortment of beauty products and services. The company's extensive product portfolio includes branded and private label cosmetics, fragrance, skincare, haircare, and professional salon services that cater to an evolving demographic of beauty enthusiasts.

With a robust business model that combines both retail product sales and beauty services, Ulta has shown an impressive ability to adapt to market trends, making it a notable player in the specialty retail industry. Currently enjoying a positive market sentiment, Ulta Beauty is positioned for growth, making it an attractive investment opportunity.

52-Week Price Performance Analysis

52-Week Price Performance Chart

The stock of Ulta Beauty has demonstrated a remarkable performance over the past year, illustrating a strong bullish trend. Starting from a 52-week low of $309.01, the stock has climbed to a significant high of $622.265. This represents an impressive gain of approximately 40.26%.

Chart Insights:

• Upward Trend: The current stock price of $620.34 is near its 52-week high, reinforcing a bullish sentiment among market participants.
• Support and Resistance Levels: Key support is evident at the $450 level, previously acting as resistance earlier in the year. The recent peak at $605 serves as a resistance point that the stock has recently surpassed.
• Moving Averages: Currently, the stock trades above its 50-day moving average of $549.87, indicating sustained upward momentum.

As Ulta Beauty's price consistently maintained its upward trajectory, it hints at potential for further gains unless a notable reversal pattern emerges. Investors should closely observe for any consolidation near current highs and consider the $450 support level as a point of interest for further trends.

Financial Performance and Metrics

Ulta Beauty's financial standings underscore its strength and potential for growth, with key financial data as follows:

• Total Revenue: Approximately $11.98 billion, demonstrating the company's robust operational capacity.
• EBITDA: About $1.86 billion, highlighting healthy profitability metrics.
• Shares Outstanding: A total of 44,362,172 shares, with 6.2% of these shares (approximately 2,097,787) sold short, indicating a generally optimistic market sentiment toward the stock.

The valuation metrics suggest that Ulta is well-positioned within the market. Analysts have a price target high of $725.00, signaling confidence in the company's performance trajectory. The target mean price is $618.22, while the median target stands at $640.00, showcasing a favorable outlook among financial experts.

Recent News and Developments

Ulta Beauty has recently achieved notable milestones, including its stock reaching an all-time high of $616.51 on January 2, 2026, reflecting strong numbers in total return upwards of 40.98% over the past year and a 27.41% increase over the last six months. Recent earnings for fiscal Q3 2025 revealed net sales of $2.86 billion, up 12.9% year-over-year, along with diluted earnings per share of $5.14, which exceeded analyst expectations.

Key news and analyst rating updates include: - On December 5, Evercore ISI Group raised its price target for ULTA from $640 to $660, maintaining an "Outperform" rating. - Following this, on December 8, TD Cowen upgraded Ulta to a "Buy" rating and set a new price target of $725, highlighting strong confidence in the company's growth trajectory.

These developments collectively reinforce Ulta Beauty's strong market positioning and investor interest.

Market Sentiment and Analyst Recommendations

The overall market sentiment towards Ulta Beauty remains positive. Based on a consensus of 23 analysts, the majority recommend a "buy" rating, with a recommendation mean score of 2.04--indicating strong buy sentiments:

• Price Target High: $725.00
• Target Mean Price: $618.22
• Median Target Price: $640.00

This level of analyst confidence points to an anticipated solid performance for Ulta Beauty in alignment with its growth strategies and evolving consumer trends. The relatively low percentage of shares sold short at 6.2% further illustrates a lack of negative sentiment towards the stock.

Conclusion

Ulta Beauty, Inc. is positioned strongly within the specialty beauty retail sector, benefiting from a robust financial performance, positive analyst outlook, and significant market momentum. Key factors driving this optimism include the company's strong sales growth, continuous market adaptations, and a compelling stock performance trajectory.

As Ulta approaches its 52-week highs, investors are encouraged to monitor any potential consolidation or pullbacks, particularly around support levels, to make more informed investment decisions. With favorable analyst recommendations and a solid financial foundation, Ulta Beauty represents a promising opportunity for stakeholders looking to invest in the specialty retail sector.

As of January 2, 2026, Ulta Beauty's stock remains a focal point for both existing and prospective investors, showcasing the company's necessity to remain attuned to market dynamics while pursuing its strategic initiatives.