We recently published a list of 10 Stocks Wall Street is Talking About These Days. In this article, we are going to take a look at where Ulta Beauty, Inc. (NASDAQ:ULTA) stands against other stocks Wall Street is talking about these days.
Gene Muster from Deepwater Asset Management said in a recent interview with CNBC that investors should take a “targeted” approach while investing in major tech companies and look for “pockets” of opportunities.
“I think that when you answer the question more holistically, there’s still—if you look at, uh, we looked at 20 different companies, tech companies, and their reporting season and graded each of them—and of the six Mag Seven, five of the six we gave an A grade, and so there’s still this outperformance that you’re seeing with the fundamentals on these companies, but that doesn’t mean that the best opportunities to invest is necessarily with them, and so again, more of a targeted approach.”
Munster also talked about some major tech companies and said he believes Jensen Huang’s AI chip giant is still “cheap” when it comes to its stock price. However, the analyst advised investors to look for smaller companies:
“You have to be uh strategic in terms of what you’re buying. If you wanted to buy a basket, I would buy a basket of smaller tech companies, sub 500 billion dollars, and focus on those. It’s probably where your bigger outperformance is.”
For this article, we picked 10 stocks currently making moves on Wall Street. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
A photograph of a customer testing out different products in the skincare aisle at a store.
Ulta Beauty, Inc. (NASDAQ:ULTA)
Number of Hedge Fund Investors: 40
A caller recently asked Jim Cramer for advice on his daughter’s investment idea related to Ulta Beauty, Inc. (NASDAQ:ULTA). Cramer said he’s bullish on the stock:
“I’ve been thinking a lot about it. One of the reasons I’ve been thinking about is, you know, that Sephora is in Kohl’s and Kohl’s is doing so poorly that I think people are going to gravitate away from Sephora and come back to Ulta. Ulta’s got new management. We have to check out the Ulta store that’s in Midtown. I love going there. I’m with your daughters. I think they got horse sense.”
Diamond Hill Long-Short Fund stated the following regarding Ulta Beauty, Inc. (NASDAQ:ULTA) in its Q2 2024 investor letter:
“Still-rising valuations have made identifying attractively valued, long ideas increasingly challenging — though we still found a few in Q2 that we believe the market is overlooking amid its increasingly narrow focus on the mega-cap technology stocks dominating the major indices. We established new long positions in VeriSign, Ulta Beauty, Inc. (NASDAQ:ULTA), Sysco Corporation and Lamb Weston Holdings during the quarter.
Ulta is a leading US specialty beauty retailer. As inflation has remained relatively elevated and consumers have found ways to economize and moderate discretionary spending, we believe Ulta is well-positioned to take share given its compelling portfolio of beauty brands across a range of price points, including its own private-label brand. We believe the current share price fails to account for an attractive outlook for the company and capitalized on a low valuation to initiate a position in Q2.”
Overall, ULTA ranks 9th on our list of stocks Wall Street is talking about these days. While we acknowledge the potential of ULTA our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ULTA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.