Coach, Inc. (COH), Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA): Picking Out The Best of Louis

Like Coach, Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) is basically a one-trick pony. However, it happens to be doing quite well right now, which means there could be more upside potential than diversified LVMH offers. Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) shares are trading near their all-time highs, though are off about 10% over the last six months. Growth investors should probably take a look at this hot concept stock.

Diversification is Good

For more conservative investors, LVMH is a good company with plenty of opportunity selling its vast collection of high-end goods. While diversification mutes the benefits of growth in any one category, it also blunts the impact of a slowdown in others. If you aren’t willing to take on the risk of a focused company, LVMH is the perfect option.

For more aggressive investors, however, Sephora’s growth points the way to an investment in Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), which is a similar concept with similar potential.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Coach and Ulta Salon, Cosmetics & Fragrance. The Motley Fool owns shares of Coach and Ulta Salon, Cosmetics & Fragrance.

The article Picking Out The Best of Louis originally appeared on Fool.com and is written by Reuben Brewer.

Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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