Ulta Salon Cosmetics & Fragrances Inc. (ULTA): Today's Featured Diversified Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Ulta Salon Cosmetics & Fragrances ( ULTA) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Ulta Salon Cosmetics & Fragrances fell $1.19 (-1.2%) to $96.73 on light volume. Throughout the day, 249,678 shares of Ulta Salon Cosmetics & Fragrances exchanged hands as compared to its average daily volume of 752,500 shares. The stock ranged in price between $96.49-$98.33 after having opened the day at $98.33 as compared to the previous trading day's close of $97.92. Other companies within the Diversified Services industry that declined today were: Planet Payment ( PLPM), down 12.1%, Pointer Telocation ( PNTR), down 7.1%, Fortune Industries ( FFI), down 6.6%, and WidePoint Corporation ( WYY), down 6%.
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Ulta Salon, Cosmetics & Fragrance, Inc. operates as a beauty retailer that provides prestige, mass, and salon products; and salon services in the United States. Ulta Salon Cosmetics & Fragrances has a market cap of $6.2 billion and is part of the services sector. The company has a P/E ratio of 40.3, above the S&P 500 P/E ratio of 17.7. Shares are up 49.8% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate Ulta Salon Cosmetics & Fragrances a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Ulta Salon Cosmetics & Fragrances as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, SoundBite Communications ( SDBT), up 12%, Innovaro ( INV), up 10%, Magal Security Systems ( MAGS), up 8.8%, and Bioanalytical Systems ( BASI), up 8.7%, were all gainers within the diversified services industry with Western Union Company ( WU) being today's featured diversified services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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