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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 down 0.2%. By the end of trading, Ulta Salon Cosmetics & Fragrances fell $1.53 (-1.2%) to $123.48 on heavy volume. Throughout the day, 1,073,223 shares of Ulta Salon Cosmetics & Fragrances exchanged hands as compared to its average daily volume of 680,500 shares. The stock ranged in price between $122.55-$124.99 after having opened the day at $123.73 as compared to the previous trading day's close of $125.01. Other companies within the Diversified Services industry that declined today were: Swisher Hygiene ( SWSH), down 6.8%, Cross Country Healthcare ( CCRN), down 6.3%, Luna Innovations ( LUNA), down 6.3% and Acacia Research Coroporation ( ACTG), down 5.0%.

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 $8.1 billion and is part of the services sector. The company has a P/E ratio of 43.2, above the S&P 500 P/E ratio of 17.7. Shares are up 27.2% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Ulta Salon Cosmetics & Fragrances a buy, no analysts rate it a sell, and 2 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, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Industrial Services of America ( IDSA), up 19.0%, Corporate Resource Services ( CRRS), up 7.3%, USA Technologies ( USAT), up 6.7% and China Distance Education Holdings ( DL), up 6.0% , were all gainers within the diversified services industry with Mercadolibre ( MELI) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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