Ulta Beauty Shares Have Room to Run

Shares of beauty retailer Ulta Beauty (NASDAQ: ULTA) underperformed the market in 2019, as demand for cosmetics weakened. The stock was up a mere 3% vs. the S&P 500's 29% gain.

Consumers continue to shift spending away from makeup and into skincare. Piper Jaffray noted a 21% decrease in cosmetics purchases among teens, an important demographic for the industry, year over year in its fall 2019 survey.

However, Ulta's been able to gain market share and drive increased traffic to stores in a tough environment for beauty. It's positioning itself as a one-stop shop for all things beauty and its partnerships with key, exclusive brands gives it an edge over the competition. The specialty retailer has an effective omnichannel strategy that engages customers. For all these reasons (and others), now may be a good time to look at Ulta stock.

Source Fool.com