11 Best Consumer Cyclical Stocks to Buy According to Hedge Funds

7. Ulta Beauty, Inc. (NASDAQ:ULTA)

Number of Hedge Fund Holders: 56

Ulta Beauty, Inc. (NASDAQ:ULTA) is one of the Best Consumer Cyclical Stocks to Buy According to Hedge Funds. On August 29, Telsey Advisory lifted the price target on the company’s stock to $610 from $590, while keeping an “Outperform” rating, as reported by The Fly. As per the analyst, it delivered a nice operational beat, thanks to the healthy performance in the first half of the year. The firm believes that Ulta Beauty, Inc. (NASDAQ:ULTA)’s store portfolio, brand partnerships, loyalty program, and infrastructure capabilities are its competitive advantages.

Ulta Beauty, Inc. (NASDAQ:ULTA) delivered robust results in Q2 2025, which include 6.7% comparable sales growth. Notably, strong top-line performance, helped by the growth throughout major categories, fueled market share growth and better-than-anticipated profitability. In Q2 2025, its net sales rose 9.3% to $2.8 billion compared to $2.6 billion. This growth stemmed mainly from higher comparable sales, the acquisition of Space NK, and new store contribution. For FY 2025, Ulta Beauty, Inc. (NASDAQ:ULTA) expects net sales of between $12.0 billion – $12.1 billion.

Diamond Hill Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Our bottom individual Q1 contributors were all from our long book, including lululemon athletica and Ulta Beauty, Inc. (NASDAQ:ULTA). Specialty beauty retailer Ulta Beauty is delivering solid results, with earnings ahead of expectations and guidance for this year consistent. Shares seem to have declined in Q1 largely in sympathy with weaker sentiment surrounding the broad consumer discretionary sector. However, we maintain our conviction in Ulta’s long-term opportunity to take share given its compelling portfolio of beauty brands across a range of price points, including its own private-label brand.”