You Have Two Days to Buy This Stock

After the closing bell this Thursday, one of my top retailers will release its third-quarter results. All of the signs are pointing to another blowout quarter for this company, and I don’t want you to miss out. Continue reading for complete details on what’s sure to be a market moving earnings report.

The stock I’m referring to is ULTA Salon Inc. (ULTA). For those of you who aren’t as familiar with ULTA Salon, this is a one-stop beauty shop, with over 20,000 unique cosmetic products from over 500 brands. In addition, ULTA operates in-store salons, which offer hair, skin and brow services. ULTA currently operates over 900 stores across 48 states, and it boasts over 18 million loyalty program members.

In October, ULTA caused a stir by raising its guidance for the third quarter and for FY 2016. For the prior quarter, it expects between 14% and 15% comparable sales growth and between $1.35 and $1.38 EPS. The revised guidance represents between 21.6% and 24.3% annual earnings growth.

ULTA also has high hopes for this fiscal year and beyond. It now expects comparable sales growth between 12% and 14% and earnings growth in the mid-twenties range. For fiscal 2017 through 2019, ULTA is shooting for earnings growth in the low twenties percent range.

In the meantime, the analyst community can’t seem to get a handle on ULTA’s near-term profit potential. Over the past several weeks, analysts have revised up the consensus EPS estimate by 5.4%. Analysts are looking for ULTA to post 21.8% annual sales growth and 23.4% earnings growth. However, ULTA has topped analysts’ expectations for the past several quarters running, and I expect a repeat performance here.

So it’s easy to see why ULTA passes with flying colors in my Portfolio Grader stock screening tool. ULTA is an A-rated Strong Buy, and I recommend that you buy it before its December 1 earnings announcement.

Sincerely,

Louis Navellier

Louis Navellier

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