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

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 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 $1.09 (1.1%) to $101.43 on average volume. Throughout the day, 1,320,340 shares of Ulta Salon Cosmetics & Fragrances exchanged hands as compared to its average daily volume of 1,335,300 shares. The stock ranged in a price between $101.42-$105.00 after having opened the day at $102.65 as compared to the previous trading day's close of $100.34. Other companies within the Diversified Services industry that increased today were: Document Security Systems ( DSS), up 12.4%, Xueda Education Group ( XUE), up 5.8%, Lime Energy ( LIME), up 5.7% and Swisher Hygiene ( SWSH), up 5.5%.

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 $6.5 billion and is part of the services sector. Shares are up 4.0% year to date as of the close of trading on Tuesday. 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and solid stock price performance. 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 negative front, Higher One Holdings ( ONE), down 11.7%, China HGS Real Estate ( HGSH), down 8.7%, InterCloud Systems ( ICLD), down 7.5% and Lincoln Educational Services ( LINC), down 6.5% , were all laggards within the diversified services industry with Alliance Data Systems Corporation ( ADS) 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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