Ulta Salon Cosmetics & Fragrances Inc. (ULTA): Today's Featured 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 Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Ulta Salon Cosmetics & Fragrances fell $2.63 (-2.9%) to $87.19 on average volume. Throughout the day, 993,185 shares of Ulta Salon Cosmetics & Fragrances exchanged hands as compared to its average daily volume of 941,900 shares. The stock ranged in price between $87.15-$89.88 after having opened the day at $89.73 as compared to the previous trading day's close of $89.82. Other companies within the Services sector that declined today were: China Auto Logistics ( CALI), down 15.2%, Sears Hometown & Outlet Stores ( SHOS), down 12.8%, FreeSeas ( FREE), down 12.7%, and Excel Maritime Carriers ( EXM), down 11.8%.
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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 $5.73 billion and is part of the diversified services industry. The company has a P/E ratio of 37.3, above the S&P 500 P/E ratio of 17.7. Shares are down 8.6% year to date as of the close of trading on Monday. Currently there are seven 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. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, NTN Buzztime ( NTN), up 14.4%, BioScrip ( BIOS), up 12.6%, Cabela's ( CAB), up 12.5%, and Innotrac Corporation ( INOC), up 10.1%, were all gainers within the services sector with Costco Wholesale Corporation ( COST) being today's featured services sector leader.

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

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