Lucrative Multi-Year Trading Opportunity In Ulta Beauty, Inc. (ULTA), Textron Inc. (TXT)

18 analysts out of 25 Wall Street brokerage firms rate Ulta Beauty, Inc. (NASDAQ:ULTA) as a Buy, while 0 see it as a Sell. The rest 7 describe it as a Hold. ULTA stock traded higher to an intra-day high of $315.73. At one point in session, its potential discontinued and the price was down to lows at $311.61. Analysts have set ULTA’s consensus price at $317.18, effectively giving it a 1.49% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $350 (up 12% from current price levels). ULTA has a 36.2% ROE, higher than the 12.24% average for the industry. The average ROE for the sector is 12.98%.

It is expected that in Jan 2019 quarter ULTA will have an EPS of $3.56, suggesting a 29.45% growth. For Apr 2019 is projected at $3.12. It means that there could be a 18.63% growth in the quarter. Yearly earnings are expected to rise by 32.6% to about $10.82. As for the coming year, growth will be about 17.74%, lifting earnings to $12.74. RSI after the last trading period was 62.03. ULTA recorded a change of 2.31% over the past week and returned 26.08% over the last three months while the ULTA stock’s monthly performance revealed a shift in price of 3.31%. The year to date (YTD) performance stands at 27.64%, and the bi-yearly performance specified an activity trend of 8.99% while the shares have moved 49.96% for the past 12 months.

Ulta Beauty, Inc. (ULTA) currently trades at $312.51, which is lower by -0.93% its previous price. It has a total of 59.13 million outstanding shares, with an ATR of around 6.35. The company’s stock volume dropped to 1.23 million, worse than 774.98 thousands that represents its 50-day average. A 5-day increase of about 2.31% in its price means ULTA is now 27.64% higher on year-to-date. The shares have surrendered $42879.49 since its $322.49 52-week high price recorded on 19th of November 2018. Overall, it has seen a growth rate of 49.96 over the last 12 months. The current price per share is $113.36 above the 52 week low of $199.15 set on 2nd of April 2018.

Ulta Beauty, Inc. (NASDAQ:ULTA)’s EPS was $2.18 as reported for the October quarter. In comparison, the same quarter a year ago had an EPS of $1.75. That means that its growth in general now stands at 25%. Therefore, a prediction of $2.16 given by the analysts brought a positive surprise of 1%. ULTA Oct 19 quarter revenue was $1.56 billion, compared to $1.34 billion recorded in same quarter last year, giving it a 16% growth rate. The company’s $0.22 billion revenue growth that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

Textron Inc. (NYSE:TXT) shares depreciated -1.11% over the last trading period, taking overall 5-day performance up to -0.25%. TXT’s price now at $51.78 is greater than the 50-day average of $51.74. Getting the trading period increased to 200 days, the stock price was seen at $60.19 on average. The general public currently hold control of a total of 225.84 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 238.4 million. The company’s management holds a total of 0.4%, while institutional investors hold about 84.6% of the remaining shares. TXT share price finished last trade -3.72% below its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -14.08%, while closing the session with 0.3% distance from 50 day simple moving average.

Textron Inc. (TXT) shares were last observed trading -28.94% down since September 25, 2018 when the peak of $72.87 was hit. Last month’s price growth of -3.74% puts TXT performance for the year now at 12.59%. Consequently, the shares price is trending higher by 19.67%, a 52-week worst price since Dec. 26, 2018. However, it is losing value with -26.02% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $50.86 and $51.32. The immediate resistance area is now $52.37 Williams’s %R (14) for TXT moved to 77.82 while the stochastic %K points at 27.08.

TXT’s beta is 1.68; meaning investors could reap higher returns, although it also poses higher risks. The company allocated $4.8 per share from its yearly profit to its outstanding shares. Its last reported revenue is $3.75 billion, which was -7% versus $4.02 billion in the corresponding quarter last year. The EPS for Dec 19 quarter came in at $1.15 compared to $0.74 in the year-ago quarter and had represented 55% year-over-year earnings per share growth. TXT’s ROA is 8.4%, higher than the 1.32% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 5.12%.

Estimated quarterly earnings for Textron Inc. (NYSE:TXT) are around $0.73 per share in three months through March with $0.89 also the estimate for June quarter of the fiscal year. It means the growth is estimated at 1.39% and 2.3%, respectively. Analysts estimate full-year growth to be 9.88%, the target being $3.67 a share. The upcoming year will see an increase in growth by percentage to 9.81%, more likely to see it hit the $4.03 per share. The firm’s current profit margin over the past 12 months is 8.7%. TXT ranks higher in comparison to an average of 3.43% for industry peers; while the average for the sector is 7.56%.