NEW YORK (TheStreet) -- Ulta Salon, Cosmetics and Fragrances (ULTA) is new to the Trifecta Stocks portfolio but has been a longtime leader in the retail space, according to Real Money contributor Jack Lang. It has great earnings momentum and a strong chart to boot, so this stock has staying power.
Lang said Jim Cramer loves this stock and has interviewed the CEO often on Mad Money.ULTA's chart shows the stock basing at a high level, consolidating the gap higher from the prior earnings in March, according to Lang. While sideways action is not bullish or bearish, it is needed to digest a big move higher. The indicators are still positive and the MACD is still on a buy signal though it may be weaker after the post earnings decline last week.
"Still, the stock action is constructive here and we would consider adding more to our portfolio on any weakness toward 148," Lang said.
TheStreet Ratings team rates ULTA SALON COSMETCS & FRAG as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ULTA SALON COSMETCS & FRAG (ULTA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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 expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
You can view the full analysis from the report here: ULTA Ratings Report