Brett_Hondow
Summary
- Ulta Beauty has been a poor performer in 2024, losing market share and struggling with profitability.
- Despite its decline, some believe Ulta is undervalued due to its past success as a high-growth stock.
- Investors should carefully consider the reasons behind Ulta’s struggles before deciding if it is a good investment opportunity.
Ulta Beauty (NASDAQ:ULTA) has been one of the worst-performing stocks in the S&P 500 in 2024, as the company continues to lose market share and struggles to improve profitability.
And yet, investors and analysts think that Ulta is a clear bargain because it was once a compounder trading at a 30x multiple.
Investing isn’t that easy, so let’s revisit the reasons for Ulta’s demise. Only then we can judge if it’s, in fact, an attractive buy-the-dip opportunity.
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