Ulta Beauty Inc. - (ULTA) - June 4, 2025

SIA Charts’ relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis. Outperformance often reflects improving investor expectations for strong company growth or sector growth. The rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing.

In today’s edition of the Daily Stock Report we are going to take a look at the specialty retailer, Ulta Beauty Inc. Ulta Beauty (ULTA) recently entered the Favored Zone of the SIA S&P 500 Index report on May 30th at a price of $471.46 after it reported very positive First Quarter Fiscal 2025 results when they announced a net sales increase of 4.5% to 2.8 billion and a comparable sales increase of 2.9%. Gross Profit also increased 4.2% to 1.11 billion. The shares are showing extremely strong relative strength moves up the S&P 500 report gaining, 90 spots in the last week, 136 spots in the last month and 390 spots in the last quarter exemplify the consistent money flow increases in the shares over the past little while. Currently the shares reside in the 69th spot out of 505 positions in the report. In looking at the attached candlestick chart of ULTA, we see the shares found a support area at the $320 to $340 area three times in August 2024, and November of 2024 and March of this year. Most recently after their earnings release the shares broke above the $440 neckline which acted as prior resistance. The shares are attempting to make a charge at its most recent high in the $550.00 area which the shares bumped its head at in both the April 2023 and the March 2024 time frame. However, before this move can materialize, the shares will need to break above its current trading area at $480 as the shares will come up to resistance very shortly. Support can be found at the $440.00 area, its prior resistance point.

The benefit of looking at Point and Figure Charts is you can see more precisely upcoming support and resistance points. In looking at the Point and Figure chart at a 2% scale for an investment grade analysis, we see the shares are coming up to resistance more specifically at the $490.78 level where the shares bumped its head back in December of 2022 and July 2023. If the shares can break above this important level, next resistance is at $552.69 and, above that, its all time high of $575.02. Currently the shares are in a very strong rising column of X’s lasting 18 boxes so the upcoming $490.78 price point will be an all important level to watch to see if this move can materialize further in the coming days or weeks. On the downside, support is at its 3 box reversal of $435.80 and, below that, $410.66 which represents an approximately 50% retracement. The shares currently exhibit a bullish Spread Double Top pattern and with an SMAX score of 10 out of 10, the shares are exhibiting very strong near term strength against the asset classes. Ulta Beauty is the largest specialized beauty retailer in the U.S. The firm offers makeup (43% of 2021 sales), fragrances, skin care, and hair care products (20% of 2021 sales), and bath and body items. Ulta offers private-label products and merchandise from more than 500 vendors. It also offers salon services, including hair, makeup, skin, and brow services, in all stores. Most Ulta stores are approximately 10,000 square feet and are in suburban strip centers. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.