5 Best Beauty Stocks To Buy Now

3. Ulta Beauty, Inc. (NASDAQ:ULTA)

Number of Hedge Fund Holders: 48

Up next on the list of best beauty stocks to buy now is Ulta Beauty, Inc. (NASDAQ:ULTA). It operates a network of more than 1,300 retail stores across the United States, selling beauty, skincare, haircare and personal care products. It also offers salon and styling services through its hair salon business. The company shares have surged 23.87% in the last 12 months, and 10.71% in the last 6 months as of May 27.

Earnings per share came in at $6.30 for Ulta Beauty, Inc. (NASDAQ:ULTA) for the first quarter, outperforming estimates by $1.81. The company pulled in $2.35 billion in revenue for the quarter, beating analysts’ predictions by $222.8 million and highlighting growth of 21% in comparison to the same period over last year.

Investors were seen buying into Ulta Beauty, Inc. (NASDAQ:ULTA) shares at the end of the first quarter, where 48 hedge funds were stakeholders of the company with aggregate holdings worth $1.14 billion. This is up from 37 hedge funds a quarter earlier.

On May 27, Baird analyst Mark Altschwager kept an ‘Outperform’ rating on Ulta Beauty, Inc. (NASDAQ:ULTA) shares, and raised the price target to $490 from $450. The analyst expressed confidence in the company’s competitive position, and likes its product offering which he views as the least cyclical in his coverage, supporting its attractive risk/reward. Jefferies analyst Stephanie Wissink in May gave Ulta Beauty, Inc. (NASDAQ:ULTA) a ‘Buy’ rating, noting that demand had returned to pre-pandemic levels. She increased the price target to $475 from $400, and sees the company’s cost discipline, rational guidance and tight inventory lowering its risk profile.