This Beauty Stock Is Sitting Pretty

Take a look at a force to be reckoned with in the $646.2 billion global beauty industry... [Derby City Daily logo]( [Derby City Daily logo]( March 15, 2024 [This Beauty Stock Is Sitting Pretty]( By Andy Swan Ulta Beauty (ULTA) is a force to be reckoned with in the $646.2 billion global beauty industry. Mention volume is up 20% year over year, boosted by a [strong holiday season]( and spring special event. More impressive: Consumer Happiness levels have surged 10% in the same time frame, near 70% positive. Mentions are filled with consumers stocking up on facial products and high-end cosmetics brands, including Charlotte Tilbury and Fenty. Last quarter, we [correctly predicted]( a major post-earnings move to the upside, as the beauty retailer's audience expands to a younger audience and overtakes Sephora, thanks in part to its wide range of offerings, from drug store staples to prestige brands. This allows the retailer to capitalize on splurges of high-dollar products while also capturing any [trade-down]( shoppers looking for more affordable options. This quarter, Ulta came through with a “better-than-expected" performance driven by “healthy traffic, record brand awareness, and strong member growth” during the holiday season, according to CEO Dave Kimbell. Net sales were up 10.2% in Q4 to $3.6 billion, gross profit grew 10.6% to $1.3 billion, and diluted earnings per share soared 21% to $8.08. The stock is down more than 4% today, but we’re not worried. RECOMMENDED LINK [1,000%+ Gains Thanks to Rare $8.8 Trillion Cash Bubble?]( Louis Navellier’s proprietary quant stock-picking system has identified five little-known stocks that could skyrocket after a rare $8.8 trillion cash bubble bursts in the coming weeks. This system has already identified 100 fully documented stock plays that have all soared 1,000% or more — including the infamous FAANG stocks. And now could be your chance to create generational wealth with just a few calculated plays. [Click here to discover how to end up on the winning side of this rare economic event](. Ulta Is Unmatched Google Trends data suggests the gap between Ulta and Sephora is widening in Ulta's favor, with Ulta mentions spiking last week, thanks to its Semi-Annual Beauty Event that launched on March 8. Google Trends The campaign, which runs through March 28, offers daily deals where consumers can snag their favorite beauty products up to 50% off in store and online. ulta.com Every time this event rolls around (which was formerly called 21 Days of Beauty), [like clockwork]( LikeFolio picks up a surge in Ulta mentions. It’s hard to compete with Ulta when it comes to customer loyalty. Ulta is the number-one beauty choice for Zoomers, according to Piper Sandler’s 2023 Teen Survey, with a whopping 63% of those female respondents reported being part of Ulta’s lucrative rewards program, Ultamate Rewards. The more you spend, the more rewards you collect, like special discounts, free gifts, early access to new products and deals, free shipping, and more. Sephora launched its own competitive event but doesn't appear to be garnering the same consumer response. Web visits show Ulta traffic pacing 17% higher year over year compared to Sephora's +8%. Long term, Ulta is likely to benefit from increased foot traffic at partner store, Target (TGT), which reported a notable shift in momentum in the fourth quarter. RECOMMENDED LINK [2024 Could be Your Last Chance to Ever Get Rich From Crypto]( Charlie Shrem, who bought Bitcoin at $5 back in 2011, warns that 2024 could be your very last opportunity to create generational wealth from crypto. After a new government regulation set to inject $30 trillion into the crypto markets, we’re likely to never see buy-in prices this low ever again. He details everything you need to take advantage of this huge, and final crypto bull run in his emergency presentation. [Click here to discover his top 5 coins for 2024]( The Bottom Line The bar was high for Ulta going into last night’s report. We’re not surprised to see this post-earnings dip – and it doesn’t change our view. Since we last [“bought the dip”]( on ULTA in August, the stock has gained 32%. This is a name we like for the long haul. [Tesla (TSLA)]( [Costco (COST)]( and now ULTA... we’ve seen some great accumulation opportunities in the market recently. While every investor is stuck reacting to short-term earnings moves, we see these dips as strategic entry points on long-term winners. That’s the beauty of LikeFolio’s forward-looking data. Now, we invite you to level up that edge – and unlock the full power of our consumer insights – [right here](. You’ll learn all about our proprietary stock-picking device, [the Social Heat Score]( and the next five stocks it’s targeting [for explosive profit potential](. Until next time, [Andy Swan's signature] [Andy Swan's signature] Andy Swan Founder, LikeFolio Discover More Free Insights from Derby City Daily Here's what you may have missed from Derby City Daily this week... ✓ [8 Genius Ways Costco Stays on Top]( ✓ [Tesla Is Playing the Long Game. You Should, Too](. ✓ [Celsius Is the Winner That Keeps on Winning]( Get Instant Access Click to read these free reports and automatically sign up for research throughout the week. [The Infinite Income Manifesto]( [25 Doomed Blue Chip Stocks]( [5 Unapologetically Profitable Stocks for 2024]( © 2024 TradeSmith, LLC t/a Derby City Insights. All Rights Reserved. 1125 N. Charles Street, Baltimore, MD 21201 To unsubscribe or change your email preferences, please [click here](. [Terms of Use]( | [Privacy Policy](