1 Unstoppable Multibagger Up 1,320% Since 2007 Trading Near a Once-in-a-Decade Valuation to Buy Right Now
Shares of beauty retailer Ulta Beauty (NASDAQ: ULTA) have more than tripled the total return of the S&P 500 since their initial public offering in 2007, rising more than 1,300%. With its sales up an almost identical amount over that time, Ulta has delivered high-teens growth rates and steadily rising profitability to its shareholders for years.
However, after guiding for low single-digit sales and earnings-per-share (EPS) growth in 2024 while warning of a consumer spending slowdown, the company has seen its share price plummet over 25% in the last two months.
As concerning as this slowdown is over the short term, Ulta's new once-in-a-decade valuation could prove that this sell-off is overdone. Here is why Ulta Beauty looks like an unstoppable multibagger to buy amid its current temporary struggles.
Source Fool.com
