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 1.5%. By the end of trading, Ulta Salon Cosmetics & Fragrances rose $3.03 (3.2%) to $97.18 on heavy volume. Throughout the day, 2,082,052 shares of Ulta Salon Cosmetics & Fragrances exchanged hands as compared to its average daily volume of 1,186,200 shares. The stock ranged in a price between $92.55-$98.33 after having opened the day at $93.28 as compared to the previous trading day's close of $94.15. Other companies within the Diversified Services industry that increased today were: JTH Holding Inc Class A ( TAX), up 5.6%, Genetic Technologies ( GENE), up 4.8%, Information Services Group ( III), up 4.8% and Management Network Group ( TMNG), up 4.2%.
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Ulta Salon, Cosmetics & Fragrance, Inc. operates specialty retail stores in the United States. Its stores offer cosmetics, fragrance, haircare, and skincare products, as well as related accessories and services. Ulta Salon Cosmetics & Fragrances has a market cap of $6.0 billion and is part of the services sector. The company has a P/E ratio of 33.5, above the S&P 500 P/E ratio of 17.7. Shares are down 4.2% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Ulta Salon Cosmetics & Fragrances a buy, no analysts rate it a sell, and 3 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. 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 20.6%, YY ( YY), down 13.0%, Education Management Corporation ( EDMC), down 12.1% and General Employment ( JOB), down 10.6% , were all laggards within the diversified services industry with MasterCard Incorporated ( MA) 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).

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