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

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 higher today making it today's featured diversified services winner. The industry as a whole closed the day down 0.4%. By the end of trading, Ulta Salon Cosmetics & Fragrances rose 95 cents (1.3%) to $74.91 on heavy volume. Throughout the day, 2.3 million shares of Ulta Salon Cosmetics & Fragrances exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in a price between $74.17-$75.15 after having opened the day at $74.21 as compared to the previous trading day's close of $73.96. Other companies within the Diversified Services industry that increased today were: DLH Holdings ( DLHC), up 15.8%, Planet Payment ( PLPM), up 4.3%, PowerSecure International ( POWR), up 4.3%, and Lime Energy ( LIME), up 4.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $4.73 billion and is part of the services sector. The company has a P/E ratio of 27.7, above the S&P 500 P/E ratio of 17.7. Shares are down 24.7% year to date as of the close of trading on Monday. Currently there are six analysts that rate Ulta Salon Cosmetics & Fragrances a buy, no analysts rate it a sell, and four 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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Fortune Industries ( FFI), down 24.5%, Intersections ( INTX), down 16.9%, Hudson Global ( HSON), down 9.1%, and Swisher Hygiene ( SWSH), down 7.5%, were all laggards within the diversified services industry with Moody's Corporation ( MCO) being today's diversified services industry laggard.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Cramer: 10 Stock Surprises

Cramer: 10 Stock Surprises

How I'm Playing ULTA and SPX Now

How I'm Playing ULTA and SPX Now

Key S&P Areas to Watch, Plus a Costco Setup

Key S&P Areas to Watch, Plus a Costco Setup

Ulta Offers a Potential Opportunity

Ulta Offers a Potential Opportunity

Dominion Energy, U.S. Concrete, AMD: 'Mad Money' Lightning Round

Dominion Energy, U.S. Concrete, AMD: 'Mad Money' Lightning Round